394.1153 Smith Company, Werner G./40: Telegram
The Consul General at Shanghai (Lockhart) to the Secretary of State
Shanghai, August 10, 1938—8
p.m.
[Received August 10—6:58 p.m.]
[Received August 10—6:58 p.m.]
1088. Your 477, August 9, 4 p.m.51
- 1.
- In the course of calls upon the Japanese Consul General on August 3 and 6 and again this morning I brought up the question of the release of the wood oil. On all three occasions I pressed Hidaka for the unconditional release of the oil and for simultaneous permission for the transportation of the wood oil to Shanghai, either on board a Japanese vessel or otherwise. On each occasion I emphasized the loss the company is incurring by the continued detention of [Page 436] the oil and pointed out the deterioration that is undoubtedly taking place. Hidaka’s attitude on each occasion has been that it is difficult to persuade the Japanese naval authorities to make an unconditional release of the oil and he has reiterated the naval authorities’ “disappointment” that the offer of the Japanese to release the oil in custody of the U.S.S. Oahu was not acceptable.
- 2.
- Before Mr. Smyth52 left for Nanking I discussed this case with him and suggested that he press the matter at Nanking with the naval authorities there, his approach to be through the Japanese Consul. Mr. Smyth reviewed all the papers in the case and will endeavor to obtain a settlement there. Apparently there is little further that can be done through the Japanese Consul here but I shall continue to press him from time to time, as I have done for some weeks past.
- 3.
- A member of the staff of the Japanese Consulate called this morning at this Consulate and in discussing the wood oil cases with a member of the staff inquired whether it would be possible to arrange a settlement of the matter by the Japanese naval authorities purchasing the wood oil for naval uses. He was informed that this would depend entirely upon the terms of the offer and also upon the American owners’ decision. He was informed that if an offer is received for the purchase of the oil it would be transmitted to the owners, the Werner G. Smith Company of Hankow. It seems probable that an offer to purchase the oil will shortly be forthcoming.
Repeated to Chungking, Hankow and Tokyo.
Lockhart