893.60/12–445: Telegram

The Consul General at Tientsin (Myers) to the Secretary of State

24. I called yesterday on Yorkson Shen, Adviser to Minister of Foreign Affairs in Tientsin, whose absence in Peking since November 21 made previous approach impossible. My call was particularly timely as Shabas, manager for Karagheusian, reported that 7 to 10 truckloads of wool had already been removed in the past 3 days from premises, evidently on instructions of General Chiang Shih-yi, president of North China Uniform Company, notwithstanding my letter to General Chiang of November 19th claiming all stocks and equipment and specifically requesting no action be taken for the time being as to Japanese property found on the premises. Shen agreed to take this matter up today with Marshal Li Tsung-jen in Peking, while Director of Foreign Affairs Department, Tientsin Municipal Government, also present during the interview, stated he would take up the question with the Mayor today. Shabas reported that work started in the weaving department on December 1, that Chinese military are attempting to repair a boiler to start heating, and that about 30 weavers are already working under supervision of 4 Japanese technicians [Page 1415] previously employed by Japanese factory occupying property. I have written General Chiang that Shabas has been instructed to inventory all property on Karagheusian premises, segregate company from Japanese property, and that Consulate General cannot understand his complete disregard of American rights and requests that immediate steps be taken to return all wool removed. General Chiang-stated in a letter to me of December 2 that “with regard to certain machines and materials later replenished by the Japanese, they shall be taken over by us”; that “as to losses of American nationals and business concerns the Americans should demand compensation from the Japanese Government”; that “property left by the Japanese cannot now be taken to set off the losses of your nationals and firms”; that “moreover, we have to use that factory for producing army blankets”; and that “we now desire to lease the building and machines belonging to these American firms,” for which our assistance is requested.

Sent to Chungking; repeated to Department.

Myers