611.939/232: Telegram
The Consul General at Shanghai (Lockhart) to the Secretary of State
[Received December 6—8:45 a.m.]
1079. My 1057, November 30, 6 p.m.24 Outstanding cases of confiscation by Mitsui agents of particular shipments of eggs belonging to (American) Henningsen Produce Company have been respectively either settled or are in process of negotiation with good prospects of settlement.
On basis of a telegram received from London proposing that marketing be controlled by the issue of licenses to recognized packers, the representatives of the eggs conference met yesterday with Mitsui representatives for a discussion of current problems. Mitsui is evidently prepared to accept the return of the occidental companies into the buying field in the interior, but the Japanese representatives proposed that the eggs should still be consigned nominally to Mitsui for shipment to Shanghai, that a certain specified proportion of the eggs should be delivered to Mitsui on arrival, and that certain fees should be paid to Mitsui by the occidental packers in connection with delivery of cargo to the latter.
The occidental packers were not prepared to accept the Mitsui proposals, considering them too restrictive of their trade, and the Japanese representatives returned to consult with their organizations. Discussions are expected to continue.
True reading by air mail to Peiping and Tokyo.
- Not printed; this telegram was a preliminary reply to Department’s telegram No. 465, November 27, 5 p.m., supra. ↩