793.94112/241
The Chargé in China (Peck) to the Secretary of State
[Received May 2.]
Sir: I have the honor to refer to the Embassy’s despatch No. 1920 of February 9, 1939, and its enclosures,27 in regard to the representations made by this Embassy to the Japanese Embassy at Peiping, against the regulations issued by the Japanese military at Shihchiachwang restricting the shipment up-country of certain commodities, notably kerosene.
With reference to the last paragraph of the above-mentioned despatch, there is enclosed a copy of despatch No. 744 dated March 2, 1939, together with a copy of its enclosure, received from the Consulate General at Tientsin,28 indicating that the Japanese denial of the existence of such restrictive regulations is not in accordance with the facts and referring to the Chinese version of the regulations, and translation thereof, which were previously forwarded to this Embassy.
Following the receipt of this despatch from Tientsin, the Embassy addressed a second note to the Japanese Embassy, dated March 13, [Page 391] 1939, a copy of which is enclosed,29 reiterating the complaint of the Standard-Vacuum Oil Company that its business is still being seriously restricted by the Japanese regulations.
In as much as the Japanese Embassy had virtually denied the existence of these restrictive regulations in its note to this Embassy of February 2, 1939,29 this Embassy’s note of March 13, 1939, evidently required clarification and in consequence Mr. Yaguchi, Third Secretary of the Japanese Embassy, called upon Mr. Reed30 and asked whether any additional information could be given which would assist the Japanese Embassy in bringing about a complete understanding of the case. To complete the Department’s records there is enclosed a memorandum29 of this conversation between Mr. Yaguchi and Mr. Reed, from which it will be noted that the former stated that on occasions local Japanese military units issued orders without the knowledge of the Japanese military headquarters.
In conversation today, Mr. Yaguchi informed Mr. Reed that a reply to this Embassy’s note of March 13, 1939, was being drafted. He volunteered the information that the reply contained substantially the following: that the restrictions did exist; that the object was the military necessity of preventing the flow of supplies to enemy forces; that it was regretted that American interests had been affected; and that it was hoped that the American interests would take cognizance of the fact of military necessity. Mr. Yaguchi added that perhaps some formula could be found which would enable the American interests to carry on their business unrestricted. A copy of the note will be forwarded to the Department when received.31
Respectfully yours,
Counselor of Embassy