393.115 Associated American Industries/2: Telegram

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

491. Your 1081, August 10, 10 a.m.,57 lease of Chinese enterprises by Associated American Industries, Incorporated.

1.
In your attitude toward the leases in question you should give full weight to the consideration that the American authorities will not support attempts by American firms or individuals in China to use the shelter which their nationality affords as a means of affording protection to Chinese enterprises. At the same time, the American authorities naturally desire to afford every appropriate protection and assistance to legitimate American enterprises entered into in good faith.
2.
Before making a decision upon the question of whether the American authorities should give their support to the efforts of the Associated American Industries, Incorporated, to place the lease arrangements in operation, the Department desires more detailed information. Please carefully investigate the matter and report further to the Department, taking into consideration the time when and the purposes for which the Associated American Industries, Incorporated, was created, its past activities and the details of its plans for operating the leased enterprises. Please report also the areas in which the enterprises in question are located and why the Associated American Industries applied to the Japanese authorities for permits to operate the leased enterprises in question. The Department would appreciate an expression of your opinion, upon the basis of the results of your inquiry, whether the parties to the leases contemplate actual American operation and control in good faith of the Chinese enterprises concerned.

Repeat by mail to Peiping, Chungking and Tokyo. A copy of your telegram under reference should also be mailed to Tokyo.

Hull
  1. Not printed.