693.001/477: Telegram

The Consul at Chefoo (Roberts) to the Secretary of State

4. Ref erring to my telegram No. 2, January 12, 5 p.m.,64 concerning the import and export restrictions.

The Japanese are organizing the Chinese merchants at Chefoo into guilds which for a fee of one percent on valuable cargo and one-half percent on ordinary cargo will undertake to obtain permission from the Japanese Navy authorizing the shipment of merchandise from Chefoo to guerrilla controlled ports of Shantung. The Japanese organizers claim their participation is necessary to obtain permission from the Japanese Navy as outside firms will be refused permits.
Guild profits are to be split 70 percent to the Japanese, 30 percent to the Chinese members.
The principal American interests affected are the Standard-Vacuum Oil Company and the Texas Oil Company, for it is very likely their dealers will be forced to ship through the guilds.
Repeated to Peiping, Chungking, Shanghai and Tsingtao.
  1. Not printed.