393.115/693: Telegram
The Secretary of State to the Consul at Swatow (Young)
8. Your 35, July 7, 11 a.m.13 The Department assumes from your telegram that the buildings in question, while owned by Chinese, are regularly leased or rented in good faith by American firms for the exclusive use of those firms, are used by American firms and are occupied by American property. If this assumption is correct, and if there are no special circumstances in each individual case which might alter the status of the buildings as being legitimately in the possession and use of American firms, it is the opinion of the Department that the American firms are clearly entitled to fly the American flag over such buildings as long as the buildings are in such use by them under regular lease or rental agreements. In the event of the existence of any special circumstances as mentioned above you should report them promptly by radio. Otherwise you should request the Japanese Consul to take appropriate steps to insure that the American rights and interests in the buildings and their contents and the right to fly the American flag be not interfered with.
In general and whenever practicable matters of this kind should, before action is taken locally, be referred to the Embassy for instructions.
The Department perceives no objection to the procedure in regard to the issuance of proclamations as described in the last paragraph of your telegram under reference.
Repeated to Chungking and Peiping.
- Not printed.↩