893.515/1367: Telegram

The Consul General at Tientsin (Caldwell) to the Secretary of State

35. Communication from the Japanese Consul General dated March 14 states that from the 15th

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“Investigations will be carried on by the Japanese consular police at the border of the Japanese Concession to detect those who are in possession of those old currencies the circulation of which was prohibited by the Provisional Government of China on and after 11th March, 1939. It is hoped therefore that all those who wish to enter the Japanese Concession should not carry with them the prohibited currencies to avoid unnecessary complications.”

Search for old notes was begun today not only at entrances to Japanese Concession but also at International Bridge and other points on boundaries of British and French Concessions, and several foreigners, including one American to my knowledge, were required to show that they had no old notes but were not searched.

At a Consular Body meeting today the Japanese Consul stated that it is the intention of the Japanese authorities to search foreigners only in case they are suspected of carrying large quantities of old notes for the purpose of nullifying the efforts of the “Provisional Government” to force the use of the Federal Reserve Bank notes; and that any such large quantity of old notes found in the possession of a foreigner will be temporarily detained and turned over to his Consular authorities, with the request that he be advised that such notes should not be carried into the areas under Japanese control.

At the instance of all the consular officers of career except the Japanese (who offered no serious objection), I have sent the following to the Japanese Consul General:

“I have the honor to acknowledge the receipt of your communication dated March 14, 1939 concerning the search of persons entering the Japanese Concession for possession of old notes which was discussed at a meeting of the Consular Body today and to enquire on behalf of my German, French, Belgian, British and Italian colleagues and myself whether it is the intention of the Japanese authorities to apply such search to our nationals whether in the Japanese Concession or in the other districts under Japanese control.

I have at the same time to state that while we fully recognize the right of the Japanese authorities to make whatever regulations they see fit regarding currency to be used in their Concession we cannot admit the right of the Japanese authorities to search our nationals for possession of the currency of a government which we recognize.”

Repeated to Peiping, Chungking, by mail to Tokyo.

Caldwell