894.5151/131: Telegram

The Secretary of State to the Ambassador in Japan (Grew)

89. The American President Lines, Limited, has asked the Department, through the Maritime Commission, for assistance in effecting the regular transfer to the United States of yen revenues blocked in Japan by exchange control. Prior to January of this year the company was allowed to present to the Japanese Government estimates of anticipated yen revenues and was then given permission in advance to export half of the estimate of the month in question but only after the revenues had accrued. Control has since been applied so that January revenues may not be wholly remitted until the month of May. Revenues amounting to 620,000 yen have already accumulated and [Page 471] clearly under the present procedure the amount of blocked yen will increase rapidly.

The remission of yen revenues has an obviously important bearing upon the competitive ability of the American President Lines in the Far Eastern trade. The Department desires that you acquaint yourself fully with the situation through the agent in Japan of the American President Lines and that you bring this matter forcefully to the attention of the appropriate Japanese authorities, explaining that the Japanese steamship lines operating to this country are free to remit accumulated balances from this country and that we expect continued reciprocal treatment for American steamship lines.