600.939/234: Telegram

The Consul General at Tientsin (Caldwell) to the Secretary of State

145. My 142, July 28, 2 p.m.53 Customs notification dated yesterday and published today states that “embargo is only applicable to the following categories of hides and skins (including native dressed or tanned): ((1) cow and buffalo hides; (2) sheep skins; (3) slink skins, with hair exceeding 25 mm.; (4) lamb skins tanned or untanned; (5) lamb plates ‘Mongolian type’ and ‘Turkestan type’.”

This continues embargo on all lamb skins regardless of whether or not suitable for military use, effect of which was referred to in my 141, July 26, 5 p.m.53 Although certain lamb plates are now exempt, skins from which such exempt plates are made remain under embargo.

Embargo still applies to articles listed regardless of date of purchase by exporters who are left with goods ready for export on June 28 which they can neither export nor sell locally except at ruinous prices if at all. Although the Japanese military may eventually negotiate for the purchase of articles suitable for military use in the hands of exporters, it is likely that military will be prepared to buy at any fair [Page 35] price articles not suitable for military use which are left on hands of exporters by embargo.

Embargo even as modified ignores existing contracts and jeopardizes entire export trade.

Repeated to Peiping, Hankow, Tokyo.

Caldwell
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