893.51 Contractual Obligations/42a: Telegram
The Acting Secretary of State to the Counselor of Embassy in China (Lockhart), at Peiping
165. Your mail despatches 1958, March 14 and 2011, April 1540 regarding indebtedness of Peiping–Suiyuan Railway Company to certain American firms. It is suggested that unless you perceive objection a further communication be addressed to the Japanese Embassy in which, after referring to your note of April 1541 and the Japanese Embassy’s note of March 7, you will state that while it is earnestly hoped that the Japanese Embassy’s request, referred to in its note of March 7, to the effect that the appropriate Japanese authorities give favorable consideration to the matter of such indebtedness, will result in prompt resumption of monthly payments due American firms, this Government desires to record a general reservation of all rights of the American firms concerned arising out of the action of Japanese agencies, or a Japanese Government controlled and directed company, in assuming control of and operating that railway.
[Page 372]You may add that in view of reports to the effect that the North China Transportation Company, a subsidiary of the North China Development Company, another Japanese Government directed and controlled company, was to “take over the work of the South Manchuria Railway in the administration of railways and other means of transportation and communication in North China” (your 193, April 18, 2 p.m.42) this Government is constrained to record a similar reservation of rights of American creditors of any railways which may be taken over, administered or operated by the North China Transportation Company.
Please repeat to Tokyo in order that similar representations may be made to the Japanese Foreign Office.43
Repeated to Chungking.
- Neither printed.↩
- Not printed.↩
- Not printed.↩
- Written representations were made at Peiping and at Tokyo; for note from Tokyo, August 17, see Foreign Relations, Japan, 1931–1941, vol. i, p. 849.↩