893.24/961: Telegram
The Consul at Hanoi (Reed) to the Secretary of State
[Received 5 p.m.]
37. Formerly cargo in transit to China that was held in Indochina by reason of the closing of the frontier could be cleared through the customs for sale. Today I have been informed by a usually reliable source that this may no longer be done except with the consent of the Japanese.
This is a further step in the Japanese control of Tongking, a control that in the not distant future may be extended to the whole of Indochina. It is to be remarked that this control will prevent the French acquiring supplies that might be needed for the defense of southern Indochina. It is of course problematic whether the French would undertake any resistance to the Japanese.
This step may be also aimed to maintain the vast [bulk of?] the cargo at Haiphong in the status of “transit cargo” so that any seizures by the Japanese will be seizures of cargo originally destined for China.
In connection with this cargo at Haiphong I have to report that, with the exception of the property of the Standard-Vacuum Oil Company and the Texas Oil Company, little or no success has been obtained in securing permission for the reexportation of even bona fide American property.
Sent to Cavite for repetition to the Department, Chungking, Peiping, Hong Kong, Shanghai, Canton.