893.70/40: Telegram
The Secretary of State to the Consul General at Shanghai (Lockhart)
Washington, September 19, 1938—7
p.m.
540. Your 1218, September 13, 5 p.m., in regard to demands made upon the cable companies at Shanghai by the Japanese.
- 1.
- Department has not yet received your despatch No. 1642 of September 193 and desires to have more information before making a definite decision in regard to the recommendation in paragraph 5 of your telegram under reference.
- 2.
- Department is inclined to believe that the Commercial Pacific Cable Company is entitled to our support for its position in regard to item 2 of the Japanese demands. In this connection please report whether the Department is correct in assuming that “balances already deposited in the suspense accounts” consist entirely of money which would normally go to the Chinese Government after all the claims of the interested cable companies had been met. Please report the nature and extent, if any, of the interest of the Commercial Pacific Cable Company in the Marconi loan referred to in item 1 of the Japanese demands. If the Company has no direct interest, please report why the Company desires to resist item 1 of the demands and your opinion why or whether we should lend official support to the Company in this respect. Please also report whether compliance with item 4 of the Japanese demands in regard to future deductions would [Page 481] stop payment, in absence of Japanese consent thereto, of obligations now in existence or only of obligations incurred in the future.
Hull
- Received September 24; not printed.↩