893.61331/169: Telegram

The Chargé in Japan (Dooman) to the Secretary of State

511. Department’s 296, September 29, 1 p.m., and other correspondence regarding Universal Leaf Tobacco Company.

1.
Negotiations carried on by us here and by the company in China over a period of more than 4 months were completely unsuccessful. The sending by the company of American tobacco buyers to tobacco centers in Honan and Anwhei was definitely refused on the ground that military operations were in progress, and permission for purchase of tobacco in Shantung was made conditional upon purchase with foreign exchange at official rate of 1 shilling 2 pence of two-thirds of total federated reserve currency to be expended by the company for buying tobacco. Notwithstanding repeated representations by us, the Foreign Office holds out no promise of obstructions to the company’s operations being removed.
2.
After consultation with the vice president of the company and with his assent, I addressed today a formal note to the Minister for Foreign Affairs setting forth at length the salient features of this case and protesting against prevention of exercise by American citizens of right to travel and against discrimination. The concluding paragraph of the note reads:

“I have previously alluded to the assurances which the American Government has so frequently received from the Japanese Government that American rights and interests in China will be respected. There is, so far as I am able to perceive, no warrant of any land whatever for the obstructions winch have been placed in the way of commercial operations by an American firm of the highest reputation and standing. The American Government will, therefore, expect that the Japanese Government, looking toward the implementation of its assurances, [Page 464] will take prompt and effective action calculated to permit the resumption by the company of its operations in China.”

Shanghai please repeat to Chungking, Peiping, Tsingtao.

Dooman