893.51 Salt Funds/208
The Japanese Ministry for Foreign Affairs to the American Embassy in Japan
Memorandum
The Imperial Japanese Government replies in the following manner to the two aide mémoire, dated March 19 and June 21, 1938, from the American Embassy relating to the Salt Administration in China.
The Japanese Government is, insofar as possible, respecting the rights and interests of the United States of America in the Salt Administration in China. The Chinese Salt Administration, particularly the collection of the salt tax in the interior, is not, as a result of the outbreak of the Chinese incident, functioning smoothly. Further, the new governments established in North and Central China are facing conditions under which they must immediately rehabilitate war areas and give aid to refugees. We are informed that at the present time the new governments are diligently studying the problem of payments on the loans secured by the salt tax. It is hoped that the American Government will fully appreciate the above conditions.