611.939/254: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
28. Reference your 671, December 8, 6 p.m.,32 and previous in regard to egg trade restrictions in the Yangtze Valley. The Department has received a letter from the Borden Company (Amos Bird Division) in which it is stated that all third-power egg packing companies in China have been in negotiation with the Japanese in an endeavor to arrive at some understanding which would permit them to continue in business and permit the Japanese a certain percentage of the trade; that third-power packers must obtain passes in the name of a subsidiary of the Mitsui Bussan Kaisha and that shipments must be consigned to the subsidiary, the Mitsui company agreeing only orally that they will turn all such shipments over to the original owner; and that representatives of the Mitsui company now state that the local military authorities agree that third-power packers can buy, ship and take delivery in their names, but that military passes in the name of a subsidiary of the Mitsui company will be necessary, and that even this arrangement must await final confirmation by the Nanking authorities at some future date.
The Department understands that the British companies concerned have approached the British Foreign Office in regard to this matter. Provided your British colleague is prepared to take similar action, the Department desires that you approach the Foreign Office, unless you have objection, and renew your efforts to effect the discontinuance of this unwarranted interference with American rights and interests [Page 486] in China. You may state that the monopoly of the egg trade in the Yangtze Valley, which the Japanese authorities at Shanghai are granting the Mitsui Bussan Kaisha under cover of a system of military passes and military restrictions on travel and navigation in central China, is clearly injurious to the interests of two American firms engaged in the trade and that it constitutes a clear, unnecessary and unwarranted violation of the often-repeated pledges of the Japanese Government that equality of treatment in China would be maintained. You may add that this is a very clear example of the monopolization of trade and enterprise which has taken place on a large scale throughout those parts of China occupied by Japanese forces.33 Sent to Tokyo via Peiping. Repeated to Shanghai.
- Not printed; in it the Ambassador reported that in reply to his representations the Foreign Office stated it had instructed Japanese officials at Shanghai to exert themselves for a prompt compromise settlement (611.939/233).↩
- In telegram No. 61, January 29, 1 p.m., the Ambassador in Japan reported transmitting a note verbale to the Japanese Foreign Office (611.939/262).↩