893.102 Kulangsu/207: Telegram

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

228. Department’s 24, July 14, 4 p.m., to Amoy and 137, July 20, 6 p.m., to Chungking. Suma called again July 26 at his request and said that the Japanese Embassy had received a further telegram from the Japanese Foreign Office to the following effect: the Foreign Office and the Japanese authorities at Amoy continue to be desirous for an early settlement; in regard to his statement on July 13 that there were only two outstanding immediate issues, the employment of 10 additional Formosan constables did not seem to be an urgent matter and could be postponed until some later date; the only immediate question outstanding was in regard to the appointment of a Japanese inspector whose salary would be only $850 local currency per month; there were ways whereby readjustments could be made in the Council’s [Page 144] budget to effect savings, one being a possible increase of about $1,000 from revenues derived from selling refuse, garbage, et cetera; the Council contemplated a new bond issue for the purpose of raising salaries and the Japanese Consul General at Amoy did not perceive the need of this measure. Suma suggested that the situation might be adjusted by a frank talk among the various consuls and the leading members of the Council. He intimated that the Japanese Foreign Office would like to have the Department send additional instructions to the American Consul directed toward the holding of such a frank talk.

Suma was reminded that we had pointed out to him on July 13 that the Japanese blockade had reportedly increased the expenses of the Council because the Council had been obliged to provide food and fuel for a large number of poor Chinese in the Settlement, and that there were involved in the question of the appointment of a Japanese as second in command of police a number of questions in addition to that of the Council’s financial capacity. It was also pointed out to him that the partial blockade had seriously disturbed the normal life and commercial activities of the Settlement and that the resultant diminution in income of residents of the Settlement constituted a factor which would naturally make it difficult for the Council to agree to proposals entailing large expenditures.

The Department requests that, unless you perceive objection, you take occasion to discuss this matter further at the Foreign Office. Various considerations occur to the Department, in connection with Suma’s approaches. From the beginning, the American Consul at Amoy has exerted his influence toward obtaining the fullest consideration by the Council of reasonable Japanese proposals; special instructions in this connection have been given MacVitty; following your conversation with Yoshizawa as reported in your 339, July 18, 7 p.m., MacVitty was instructed to take such steps as might be appropriate toward effecting an arrangement whereby the various landing parties at Kulangsu, including tie Japanese, might be withdrawn. From the information in the possession of the Department there does not seem to have been manifested any corresponding or reciprocal desire on the part of the Japanese authorities at Amoy to seek a reasonable adjustment of the difficulties in regard to the Settlement, which in fact were created by the Japanese. On the contrary the partial blockade has continued, and the Japanese-controlled press has been conducting an abusive campaign against the Municipal Council, which includes an American citizen, and has sought to create among the Chinese on the island violent feeling against foreigners other than Japanese. While the Department continues to hope that a reasonable adjustment can be reached at an early date, and is sending a Japanese [Page 145] speaking Foreign Service officer to Amoy for the purpose of facilitating local discussions, it would seem that some of the psychological obstacles to an early adjustment could be removed by the Japanese without prejudice to reasonable consideration of their proposals, and the Department hopes that the Japanese authorities will see their way to taking some beneficial action toward that end.

Sent to Tokyo via Shanghai. Repeated to Chungking, Peiping and Amoy.

Hull