811.51693 Manchuria/63: Telegram

The Consul at Dairen (Chase) to the Secretary of State

61. Reference is made to paragraph 4 of the Consulate’s telegram 44, September 5, 11 a.m.33 The National City Bank has received permission to collect its outstanding loans, all of which have now been paid into Yokohama Specie Bank and frozen. Permission has also been given to pay about 10 percent of the depositors amounts totaling 25% of the deposits (including those referred to in the Consulate’s telegram under reference). The manager is of the opinion that bribery was involved in obtaining most of the permits.

The authorities are making a strongly obstructionist attitude in all matters relating to closing the bank, which has been orally informed that a blanket license for the necessary transactions will not be granted, but that each transaction of any kind will require a special permit. As the requirements of the authorities [are?] met, new requirements are brought forward to be followed by yet others when they have been complied with. Permits are not refused but action is continually postponed. It now appears that the authorities are attempting to collect taxes of more than double that previously stated by them. The Embassy will be kept informed of developments.34

Sent to Tokyo. Repeated to Peiping for the Department.

  1. Not printed, but see footnote 21, p. 419.
  2. The Ambassador in Japan reported in telegram No. 1559, October 2, 7 p.m., that informal representations were made to the Japanese Foreign Office looking toward an amelioration of the difficulties of the National City Bank (811.51693 Manchuria/64).