393.115 Tung or Wood Oil/273: Telegram
The Consul General at Hankow (Spiker) to the Secretary of State
[Received—7:26 p.m.]
250. Referring to the Department’s No. 76, October 18, 6 p.m.,14 this office believes that no good purpose will be served by making further approaches to the Japanese authorities in regard to movement on the Yangtze of American cargo in general and of cargoes mentioned in Department’s telegram in particular, unless the American authorities are prepared to negotiate at length on basis of eventual arrangements of “wash” sale of cargo to the Japanese here as stated in Shanghai’s No. 825, September 15,7 p.m.14 concerning wood oil and as subsequently notified to this office by Japanese Consul General; the Japanese military are adamant on this point evidently in order to preserve flimsy fiction that only military supplies may be shipped on so-called military transports. In view of instructions in second paragraph of the Department’s telegram No. 346, September 15, 4 p.m. to Shanghai concerning wood oil, it is assumed that American authorities are “not in any way to be a party to” arrangements of the nature described.
- 2.
- Further, this office is reliably informed that at least one large British firm here, without British official intervention, is now shipping ramie bristles and other cargoes by the device of “wash sales” to private Japanese shipper for shipment to Shanghai where title reverts to the British owner of the goods. Japanese shipper makes all the arrangements with the military. Under such circumstances I perceive no reason why the local British firm Arnhold Trading Company, Limited should not, entirely on its own responsibility, directly arrange for shipment to Shanghai of the 60 tons of ramie allegedly contracted for by the New York branch of the firm. The same view is held in respect to such local agent as H. Rosenhirsch and Company, New York, or other American consignee of cargo possibly still held in Hankow, may wish to appoint agents to attempt shipment from Hankow to Shanghai. This office is continuing investigation of Rosenhirsch cargo and of possible other cargo held for bona fide American consignees. Further telegraphic report will be made.
- 3.
- Irrespective of final action, it is suggested that no action be taken by American authorities in relation to the Arnhold ramie shipment until after wood oil shipments have left Hankow. The Japanese military authorities appear to have suspected bona fides of Arnhold Trading Company, Limited’s shipment and certain military authorities proposed that British-owned wood oil of both Arnhold and Bunge be excluded from special arrangements for shipment to the United States. In this regard see my 225, August 26, 6 p.m. to the Department and my September 1, 9 a.m. to Shanghai.15 Shipment was subsequently permitted. Steamer[s] Taketoyo Maru and Alaska Maru have arrived at Hankow and loading of all wood oil for American consignees will probably be completed within next 10 days.
Repeated to Chungking, Peiping and Shanghai.