611.939/263: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
50. Swatow’s 66, December 9, noon,39 and 4, January 31, 9 a.m.40 The department desires that, unless you perceive objection, you call [Page 493] at the Japanese Foreign Office and leave an aide-mémoire along lines as follows:
“On November 15, 1939, the American Embassy brought to the attention of the Japanese Foreign Office41 information in regard to heavy financial exactions which were being demanded by Japanese agencies in connection with the export of linen drawn work and embroidery by American firms in Swatow, a port which has been for several months declared closed to third-power trade by the Japanese authorities on the ground of military necessity. The Japanese Foreign Office was informed by the American Embassy that on a shipment of 1,186 cases of linen drawn work and embroidery in September, American exporters, in order to obtain permission to ship, were required to pay an assessment of $500 Chinese National currency per ton in addition to a Swatow–Shanghai freight rate charge of $41 per ton; and that on a second shipment of 861 cases, the assessment was at the same rate but the freight rate was increased to $98 per ton. It thus appeared that on the first shipment from Swatow to Shanghai the American exporters were charged the exorbitant sum of $541 per ton and on the second $598 per ton, as against $15 per ton prior to the hostilities.
In view of the repeated assurances of officials of the Japanese Government that American rights and interests in China would not be interfered with, the Government of the United States expected that once the facts were brought to the attention of the Japanese Government steps would be taken to cause the cessation of illegal exactions at Swatow. Unfortunately, this has not been the case. On the contrary, reports have been received of further such levies. In December a third shipment consisting of 1,474 cases of linen drawn work and embroidery was made at Swatow; on this shipment there was assessed $500 per ton in addition to freight charges of $83 per ton. As a condition precedent to shipment exporters were required to sign a statement affirming that they would pay $500 per ton on cargo exported as long as the port of Swatow remained closed, that such ‘contributions’ were voluntary and that trade and transportation rates were reasonable and not exorbitant. A fourth shipment consisting of 1,055 cases of linen drawn work and embroidery has recently been made and similar charges have been collected.
The Government of the United States is aware that the Japanese authorities at Swatow aver that, for military reasons, the port is closed to commercial shipments; but the Government of the United States is also aware that Japanese trade in many commodities continues at that port and it has become evident that exportation of linen drawn work and embroidery by American merchants is allowed subject to illegal and unwarranted exactions. Trading conditions at Swatow have become such as unavoidably to create the implication that those concerned are, for their own special purposes, and to the serious detriment of the American interests concerned, taking advantage of [Page 494] the situation which has been created at Swatow by Japanese armed forces.”
Sent to Tokyo via Peiping. Repeated to Shanghai and Swatow. Peiping please repeat to Tokyo Swatow’s no. 4, January 81, 9 a.m., if you have not already done so.
- Foreign Relations, 1939, vol. iii, p. 473.↩
- Not printed.↩
- See Department’s telegram No. 245, November 3, 1939, 6. p.m., Foreign Relations, 1939, vol. iii, p. 469.↩