Foreign Relations of the United States Diplomatic Papers, 1938, The Far East, Volume IV

394.1153 Smith Company, Werner G./21: Telegram

The Consul General at Shanghai (Lockhart) to the Secretary of State

Shanghai, July 7, 1938—4 p.m.
[Received July 7—11:40 a.m.]

961. Tokyo’s 443, July 6, 6 p.m.⁸

1. The Japanese authorities both at Nanking and Shanghai have repeatedly been assured that the wood oil is the property of the Werner Gr. Smith Company, an American concern at Hankow. The Consulate General endeavored some weeks ago without success to obtain from Hankow documentary proof of ownership to support this statement. The Japanese authorities, although not entirely satisfied, have now tacitly recognized American ownership.

2. The Japanese naval authorities’ contention that the Yangtze is not yet open to commercial traffic is only partially true because Japanese vessels pass freely up and down the Yangtze between Shanghai and Nanking and have accepted freight.

Repeated to Hankow and Tokyo.

Lockhart

8. See last paragraph of telegram No. 956, July 7, 9 a.m., from the Consul General at Shanghai, p. 394.