793.94112/294: Telegram

The Consul General at Shanghai (Lockhart) to the Secretary of State

1133. My No. 1123, December 19, 7 p.m.26 In the course of a conversation with the Japanese Consul General this morning I inquired whether he could give me specific information regarding the conditions under which the Yangtze would be reopened to navigation to Nanking, and also as to the date on which it was expected that the new regulations would come into force. Mr. Miura stated that the Japanese authorities were confident that the reopening would take place within 2 months, and in reply to my inquiry as to restrictions which might be imposed he stated that this phase of the matter had not been worked out by the military and naval authorities but that it was the Japanese intention to reduce the restrictions to a minimum; that if the plan worked satisfactorily and if the river is not used to send supplies to Chinese Government troops and guerilla bands the waterway would be open to Hankow after the lapse of a reasonable length of time following the reopening of Nanking. In reply to my inquiry as to why unrestricted navigation could not now be restored as far as Hankow, Miura replied that guerrilla bands were still a menace in some spots and also that it has thus far been found difficult to prevent the river from being used as a source of supply for these bands and for Government troops which can be reached through river connections. He stated that the restrictions to be imposed will be based entirely on military necessity. I pointed out that the real need is for complete restoration of navigation to its pre-hostilities status and emphasized the vital interest which the American Government and the American business community at Shanghai have in the Yangtze problem; that there can be no freedom of trade as long as any restrictions of a military character are imposed on the movement of commerce up and down the river.

Miura inquired how the American business community viewed the Japanese announcement of the proposed reopening of the river, and I said that the announcement had been received with somewhat [apparent omission] unless all restrictions were removed on the river as [Page 797] far as Hankow whereas others felt that at least the opening to Nanking, even with modified restrictions, would improve trade facilities in some commodities and that this would lead to an extension of facilities to Hankow. I told Miura that the unanimous opinion of the American business community, which opinion I shared, was that the river as far as Hankow should be completely opened up with as little delay as possible and without any restrictions whatsoever. The plans for the reopening of the river to Nanking are unquestionably still in a nebulous stage. The mere fact that the Japanese are thinking in terms of 2 months, rather than the immediate future, for the opening of the river seems to denote they [that?] they are greatly interested in the effect which the announcement may have on Japanese-American relations and that American reactions may have an important bearing on the future course of events in the Yangtze region.

Repeated to Peiping, Chungking. Code text by air mail to Tokyo.

Lockhart
  1. Not printed.