393.115 Carolina Leaf Tobacco Company/1: Telegram
The Consul General at Shanghai (Lockhart) to the Secretary of State
[Received 6:51 p.m.]
872. On June 11, 1938, the Carolina Leaf Tobacco Company, an American firm, informed me that 558 hogsheads of tobacco belonging to it and stored in the godowns of the Joint Savings Society north of Soochow Creek were found to have disappeared. The company stated further that on November 1, 1937, the day following the occupation by units of the Japanese naval landing party of these godowns, the company applied to the Japanese Consulate General through this office for permission to remove this cargo. The company made repeated requests but was not granted permission to visit the godowns until May 1, 1938, when the manager, together with representatives of the Japanese naval landing party and a Swiss subject inspected the godowns and found all tobacco had been removed; inasmuch as traces of tobacco, which was still dry, were found in the godown, the manager is of the opinion that the tobacco had been removed shortly before the date of inspection.
On May 12 I informed the Japanese Consul General of the above facts and requested that this American-owned cargo be located and returned without delay, reserving the right to claim compensation for any losses suffered by the company. In a reply dated June 14, the Japanese Consul General stated in part as follows:
“The godown of the Joint Savings Society had been occupied by Chinese troops since August 1937 and consistently fierce fighting was carried on in and around the godown between the landing forces of the Japanese Navy and the Chinese troops.
[Page 367]It was proved later that all hogsheads of tobacco stored there were used by the Chinese in place of sandbags to cover themselves from attack. The Japanese landing forces therefore seized all hogsheads of tobacco that remained there as booty after their occupation. In view of the foregoing I beg to inform you that to my regret neither the return of hogsheads of tobacco to the former owner nor any claims for damages in tnis connection can be taken into consideration.”
In the meantime the manager of the company has been approached on several occasions by Chinese and Japanese “go-betweens” offering to sell this tobacco back to him which he has reason to believe has been sold by the Japanese naval landing party to tobacco merchants.
I am making further representations to the Japanese authorities here protesting against such arbitrary treatment of American property particularly when the original request to remove this cargo was made to the Japanese general by this office on November 1, 1937, and pointing out that the refusal of the Japanese authorities to return this cargo or to compensate for same is a very serious matter and has been referred to the Department.
Repeated to Hankow, Peiping and Tokyo.