394.1153 Smith Company, Werner G./24: Telegram
The Secretary of State to the Consul General at Shanghai (Lockhart)
Washington, July 9, 1938—5
p.m.
Following for Tokyo:
“236. July 9, 5 p.m. Your 443, July 6, 6 p.m.,14 and Shanghai’s 961, July 7, 4 p.m., wood oil of Werner G. Smith Company.
- 1.
- Department considers that the Japanese authorities have been given ample assurance that the wood oil in question is American property. In this connection see paragraph 4 of enclosure to your despatch number 2937 to the Department of May 1615 entitled ‘Japanese interference with shipment of the Werner G. Smith Company on the Yangtze River.’
- 2.
- Department suggests that you say to the Foreign Office that your Government feels that it has been extremely patient in regard to this matter over a long period of time during which the American property under reference has been held by the Japanese forces on the Yangtze; that we find no warrant for any suspicion or contention that there is any proprietary interest other than American in the wood oil shipment under reference; that when this shipment left Hankow in October last it consisted of 280 tons; that this amount has now apparently dwindled to some 123 tons (as indicated in the memorandum addressed by you to the Japanese Ministry for Foreign Affairs on May 6, 193815); that, so far as commercial traffic on the Yangtze is concerned, we have knowledge that Japanese vessels pass freely up and down the Yangtze between Shanghai and Nanking and have accepted freight; that we [Page 400] are unable to reconcile the continued detention of this American property with the assurances given you by the Foreign Minister and his predecessor that respect will be shown for the rights and property of American nationals; and, that, while no publicity in America in connection with this case has thus far come to the attention of the Department, further delay in unconditional release of the remaining portion of the shipment will almost inevitably result, through complaint of the Company concerned or otherwise, in inquiry on the part of the press, in response to which the Department would be compelled to admit that there is in this case flagrant violation of American rights.”
Repeat to Hankow.
Hull