Office of the Historian

394.1153 Smith Company, Werner G./25: Telegram

The Third Secretary of Embassy in China (Allison) to the Secretary of State

Nanking, July 12, 1938—3 p.m.
[Received July 12—2:27 p.m.]

134. Tokyo’s 454, July 11, 5 p.m., wood oil case.

1.
With regard to paragraph 2 of Tokyo’s telegram under reference, it should be pointed out to the Japanese Foreign Office that, [Page 406] while the Japanese authorities in Shanghai have stated they were willing to transfer the oil to the custody of the American authorities at Nanking, the Japanese authorities here, as reported in my No. 127, June 27, 4 p.m.,22 have refused to take any action in the matter pending receipt of further instructions from Shanghai.
2.
It is difficult to furnish the precise data requested by Tokyo’s third paragraph, as in order to do so it would be necessary to maintain a continuous watch over goods from the time they are landed until they are delivered to the various shops. However, members of the staff of this office have on numerous occasions seen Asahi and Kirin Beer, “Anchor Brand” gasoline, tinned goods and other commodities unloaded from ships along the Bund, and the same brands of goods have later been seen to be available for purchase by Chinese and foreigners at Japanese stores within the city. Some time ago I was personally informed by the manager of a Japanese provision shop, from whom I had purchased some tinned goods, that his stock was brought from Shanghai on Japanese vessels. It might also be mentioned in this connection that I have been informed by a British naval officer that Jardine Matheson and Company has recently been permitted by the Japanese to send a tug to Nanking for the purpose of towing to Shanghai one of their lighters which had been left here. Since this could be done it is difficult to see why Jardine’s could not send a tug up to tow the wood oil to Shanghai as was originally suggested by the Werner G. Smith Company.

Repeated to Hankow and Shanghai. Shanghai please repeat to Tokyo.

Allison
  1. Not printed.↩