Office of the Historian

351G.115/16: Telegram

The Consul at Hanoi (Reed) to the Secretary of State

Hanoi, May 25, 1941—4 p.m.
[Received May 26—2:31 a.m.]

70. Reference is made to my telegram No. 69, May 25, 10 a.m.

1.
That the Japanese have been planning the seizure of cargo at Haiphong is evidenced by the presence of a number of large transports [Page 160] at and near Haiphong; that they were prepared to make serious trouble if the French did not agree is evidenced by the fact that since May 21 the number of airplanes at Gialian has been increased to more than 100 and that early this morning many planes flew over Haiphong as an apparent measure of intimidation. The Japanese military are in great evidence and they have placed machine guns at points close to the properties occupied.
2.
In the main the letter addressed to the two American companies stated that the Japanese consider the companies still to be the Southwest Transportation Company and the China Syndicate, the transfer of title to be fraudulent and the cargo in question to be destined for the Government of Chiang Kai Shek. The Japanese previously expressed the view that all transit cargo was destined for that Government (my telegram No. 32, March 7). The letter concludes that any discussion as to the taking of this cargo will have to be undertaken at Tokyo and between the Japanese and Indochina Governments.
3.
According to the latest information, the detained watchmen have been released, there have been no other incidents and the Japanese are systematically emptying the various warehouses, with particular regard to gasoline and metals. Cargo belonging to the American firm, Connell Brothers, is stored in one of these warehouses and it is possible that the Japanese may seize these goods.
4.
I have protested in general terms to the Governor General and the Japanese Consul General, reserving all rights as regards the American interests that may be or may be found to be involved.

Sent to Cavite for repetition to the Department, Chungking, Pei-ping, Hong Kong, Shanghai. Shanghai please repeat to Tokyo.

Reed