893.61331/132: Telegram
The Consul at Tsingtao (Sokobin) to the Secretary of State
[Received 7:37 p.m.]
23. Universal Leaf Tobacco Company case. After receiving some encouragement from Japanese Embassy officials in Peiping who indicated that the company could operate in Shantung tobacco market if it purchased $200,000 Federal Reserve currency at the official rate of exchange, the company has been informed by the local Japanese Consulate General that such a small figure is not acceptable here and that $1,500,000 should be acquired by the company at official rate of exchange. The company naturally refused to consider such an amount and has suspended negotiations. At present the firm can neither purchase tobacco nor can it ship its stocks from Tsingtao but confidentially it prefers for the time being to let the whole matter rest.
Repeated to Embassy and Department. Tokyo informed by mail.