611.939/159

Memorandum by the Chief of the Division of Far Eastern Affairs (Hamilton) of a Conversation With the Counselor of the Japanese Embassy (Suma)

Mr. Suma called at his request. Mr. Suma said that following our conversation of several days ago the Embassy here had sent a telegram of inquiry in regard to the inability of the American Silk Spinning Company to obtain supplies of Canton silk waste. Mr. Suma said that the Embassy had now received a reply to the effect that the Pearl River was closed for the moment; that this of course affected adversely the export from the Canton area of all commodities, including [Page 424] silk waste; and that he understood that for the time being some silk waste was being exported by “their man”.

I asked Mr. Suma whether the expression “their man” meant that Japanese were exporting silk waste whereas nationals of other countries could not. When he intimated that this was the case at present I said that this was out-and-out discrimination; that this Government had made repeated representations to the Japanese Government in regard to the discriminations in favor of Japanese and against American and other nationals which were being put into effect in various areas of China; that, in reference to his statement that the Pearl River was closed for the moment, I would comment that the river had been closed for months already and that during these months our reports indicated that Japanese shoppers and merchants had gone to Canton in numbers far exceeding the number there before the hostilities began. I said that we could perceive no basis whatsoever for continuance of these conditions.

M[axwell] M. H[amilton]