893.61331/128: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received November 9—8 a.m.]
667. Embassy’s 664, November 8, 3 p.m. Arbogast met twice with the Japanese Embassy authorities, and informed this Embassy that no decisive results were achieved, primarily because of the inability of the Japanese side to give assurance that the purchase of $200,000 North China currency at this time would preclude subsequent similar demands by the Japanese military regardless of the company’s business needs and the conditions under which its Japanese and other competitors operate. The Japanese authorities were quoted as saying that American firms engaged in business in China would be expected to purchase local currency in exchange for United States dollars at the official rate.
[Page 84]Arbogast left by plane this morning for Tsingtao and Tientsin to consult with his board of directors, and plans to return shortly to Peiping.
Repeated to Tokyo, Shanghai.