611.9531/7–1746: Telegram

The Political Adviser in Korea (Langdon) to the Secretary of State

restricted

77. United Press under Washington date line July 10 quoted John W. Staggers, President of recently incorporated American World Trade Export-Import Company, as saying following:

South Korea will be opened to commercial trade within next 30 to 60 days.

His company has several hundred exclusive contracts with major US manufacturers for supplying their products to Korea. Also has 70 or 80 such contracts for Philippines and is presently filling $4,000,000 worth of orders from Chinese Government (nature of which he declined to reveal). A Korean, Chang Keeb Young, will leave shortly for Korea to represent company there. Company will export many Korean products to United States and other countries; for example, all Korean stocks of cultured pearls as well as Korean fish, minerals and rice.

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Other company officers are Jay Jerome Williams, Vice President; L. E. Engels, Secretary Treasurer; Lowell J. Bradford, Robert M. Woods, H. W. Lady, Dr. James E. Shinn, Colonel Ben Limb, Directors. Shinn said to be American Field Representative of Korean American Council and Limb, Washington Representative of Syngman Rhee. End UP story which is receiving wide attention in local press.

In view of Staggers’, Williams’, Shinn’s and Limb’s former connections with Rhee and of possible association in minds of Korean people of this report with earlier stories of American promotive schemes revolving around Rhee, which aroused real anxiety among Koreans of all classes and gave pro-Soviet elements material for sowing mistrust of our aims in Korea, General Hodge on July 15 made following public statement:29

“The Korean people have been concerned, as I have been, with reports from the United States during the past few days regarding the alleged establishment of American companies to engage in import-export trade with Korea within the next 30 to 60 days. These reports and rumors have been disseminated by various American press services, based on statements by private individuals or corporations.

“I assure the people of Korea that USAFIK has had no previous or official information regarding this alleged anticipated trade with Korea. Specifically, the American World Traders Export-Import Company, recently in the news, has not applied for nor has it received any license for trade with Korea. Furthermore, no request has been received by this Headquarters for representatives of this company to proceed to Korea.

“I assure the Korean people that I will be consulted before any import-export trade arrangements are concluded for South Korea. I also assure the Korean people that I will not permit any exploiting of South Korea by large firms or monopolies. Any import-export arrangements that are set up for South Korea prior to the establishment of the Korean Provisional Government under the Moscow decision will be made through the Department of Commerce and the Economic Board of Military Government and will be for 1 purpose only; namely, to benefit Korea, Koreans and Korean economy.”

Langdon
  1. In telegram 99, July 19, 7 p.m., to Seoul, the Department expressed its entire agreement with General Hodge’s statement (611.9531/7–1746).