394.1153/6: Telegram

The Secretary of State to the Minister in Switzerland (Harrison)

1833. American interests China. Your 2361, May 30, and 2492, June 5. In United States Japanese nationals and their agents may liquidate business enterprises subject only to supervision by appropriate Federal authorities. They have custody of their records and are allowed to collect monies due them and to pay their obligations. The only exception relates to Japanese banks, which in New York and California are being liquidated by State banking authorities and in Hawaii and the State of Washington by Federal banking authorities. Even in case of banks, however, Japanese nationals have access to their records.

The United States Government considers the action of the Japanese authorities in occupied China to be extremely high-handed, especially their action in denying to responsible representatives of American organizations access to their books and papers. If such American nationals are not allowed to operate their enterprises with merely supervisory control, they should at least be given access to their books, papers, and properties in order that they may prepare an inventory of their properties and adjust their affairs in a systematic and understandable manner so that they may have a record of their outstanding obligations and of the general state of their business.

Please request that Swiss representatives at Tokyo and Shanghai be so informed and that the latter furnish by telegraph lists of [Page 1082] American properties affected with full name of each company. Names will enable American authorities charged with administration of China Trade Act1 to identify China Trade Act companies.

Hull
  1. Approved September 19, 1922; 42 Stat. 849.