394.1153/29: Airgram

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

A–506. American interests—occupied China. Legation’s 1088, February 16.17 Legation requested Swiss Foreign Office November 6 ask Swiss Consulate Shanghai verify report Koelnische [Zeitung?] Oct. 26 which stated Japanese authorities turned over to Chinese administration Shanghai 52 British or American firms, several schools and missionary institutions.

Fontanel telegraphs that inasmuch as Department made no comment statements contained Legation’s telegrams under reference he refrained from forwarding further reports concerning Japanese measures taken against property Swiss-protected nationals. Following is Fontanel’s résumé current situation:

Since February 1943 Jap authorities on several occasions transferred to administration and control Nanking Government large number of properties located Shanghai and in outports belonging to enemies of Japan including principal American-British commercial and industrial enterprises, educational institutions (including universities, [Page 1089] churches)18 and excluding only enterprises actively exploited under direct military control. Fontanel believes these transfers made for propaganda purposes in effort demonstrate that Jap authorities are materially disinterested in occupation China and recognize sovereignty of Nanking Government. Jap authorities plundered equipment and essential reserves several enterprises prior transfer. Majority of others still under immediate control of Japan inspectors.

Notwithstanding repeated representations, Fontanel unable to obtain statement of attitude Jap authorities toward enemy property and unable to obtain official information concerning transfers reported to him. Buildings containing effects [of persons?] repatriated or containing segregated repatriated [sic] persons partly rented Japanese citizens and partly left unoccupied under Japanese seals. Many rifled owing to [lack of?] police protection. Fontanel inquires whether Department desires receive telegraphic list transferred properties published local press.19

Harrison
  1. Not printed; it reported that the Japanese authorities had ceded to the Nanking Government about 1,000 confiscated enemy industrial and commercial enterprises and educational institutions (394.1153/14).
  2. Further information on the disposition of seized American and British properties was furnished to the Embassy in China by the Chinese Ministry for Foreign Affairs. The information, based on Japanese broadcasts and newspaper accounts, was transmitted to the Department from time to time. On June 29, 461 pieces of such property in Kwangtung and at Hankow and Amoy were turned over to the Nanking regime by the Japanese. Similarly transferred were 67 pieces in the Wuhan area on July 20; 220 buildings in the Canton area and unidentified properties in Central China on July 29; 180 pieces at Amoy on July 30; 17 pieces in the Hankow area on September 30; 39 pieces in North China on October 25; and 58 pieces in the vicinity of Peiping on December 21.
  3. In airgram No. 22, January 18, 1944, the Department advised the Minister in Switzerland of its desire “to receive such reports on American property as Swiss representatives may be able to prepare” and requested the Minister to inquire “whether lists of transferred properties published in the press … could be forwarded by mail.”