893.51 Con Ob General American Car Co/29: Telegram
The Secretary of State to the Counselor of Embassy in China (Lockhart), at Peiping
271. Reference Department’s 328, December 22, 1938, 5 p.m.91 Department has been advised by General American Car Company [Page 410] that it desires that representations be made to Japanese authorities along the lines indicated in telegram under reference.
Unless you perceive objection it is accordingly suggested that you address a communication to the Japanese Embassy in which, after setting out the contentions of the claimant company to the effect that as a result of lack of compliance with the provisions of the 1933 contract the Railway became legally obligated to make payments in conformity with the provisions of the 1922 contract, you will state that the company has indicated its willingness to waive its alleged rights to payments as specified in the 1922 contract on condition that payments now past due under the 1933 contract are promptly made and on the further condition that payments due in the future under latter contract will be promptly made on respective due dates. Pertinent provisions in the two contracts as set out in Fowler’s memorandum of September 21, 1938 to the Embassy at Peiping95 may be quoted in your communication, but Department desires to make it clear that above contentions are those of claimant and are not to be attributed to the Embassy or Department in such communication.
In urging that installments due claimant company be met by Japanese authorities you may say that it has been represented to the Department that Japanese authorities are making payments as they become due on Peiping Mukden Railway bonds including the section of the railway from Shanhaikwan to Peiping.
Please forward copies of the code texts of this telegram and of telegram under reference and Fowler’s memorandum to Embassy at Tokyo to enable latter to make similar representations to Foreign Office.96
Sent to Peiping, repeated to Chungking.