394.1153 Smith Company, Werner G./23: Telegram
The Consul General at Shanghai (Lockhart) to the Secretary of State
[Received July 11—2:14 p.m.]
980. Department’s 236, July 9, 5 p.m. to Tokyo. In a conversation Saturday with Morishima, Counselor of Japanese Embassy, I pointed out to him the urgent necessity of the Japanese naval authorities releasing the wood oil, with permission for its shipment to Shanghai. It was suggested that facilities for shipment be accorded on one of the Japanese freight vessels now plying the Yangtze. Morishima was reminded of the fact that this Consulate some weeks ago, as well as the Embassy at Nanking, had assured the naval authorities that the wood oil was American owned. I said that it seemed to me that an assurance of this kind from the Consulate General and from the Embassy should be sufficient to identify the American ownership of [Page 403] the property. Morishima has just been informed that the sole purpose of seeking the release of the wood oil is to enable the company to put it on the market; that the oil is used only for the making of paints and varnishes; that it is deteriorating in quality and value and that its release without some facilities for its movement to the Shanghai market is of no material value to the owners of the property.
Repeated to Hankow and Tokyo.