393.115 Tung or Wood Oil/22: Telegram
The Consul General at Hankow (Spiker) to the Secretary of State
[Received July 27—9:40 a.m.]
174. Department’s 57, July 24, 7 p.m. There are stored at Hankow awaiting shipment 3601 long tons of American owned wood oil, the property of three American firms, the Werner G. Smith Company of Cleveland, Spencer Kellogg and Sons of Buffalo and O. E. Vongehr, [Page 433] a China Trade Act firm, all having offices in Hankow. This wood oil is valued at more than dollars 1,734,000 United States currency. The bulk of it has been here since 1937. The Consulate General on July 19 made separate formal representations to the Japanese Consulate General requesting on behalf of the three American firms facilities for shipment of their wood oil and pointing out the considerable financial losses already suffered from its enforced detention at Hankow. A similar request made by the Consulate General at Shanghai in May for shipment of part of this wood oil (340 tons owned by O. E. Vongehr) was refused by the Japanese authorities in June on the ground that “commercial navigation on the Yangtze is still prohibited on account of military operations”. I am not optimistic about the results of representations made here.
- 2.
- The local representatives of the three American firms agree that the best means of getting their wood oil to Shanghai is for them to charter the necessary floating equipment either a tanker or lighters at Shanghai and for this equipment to be escorted from Shanghai to Hankow and back to Shanghai after the wood oil has been placed aboard by the next American vessel to make the trip. It is understood that an American gunboat probably will be leaving Shanghai for Hankow some time next month.
- 3.
- The Japanese are exporting and importing by the Yangtze in considerable quantities. Japanese products can be bought in scores of Japanese shops in Hankow. Chinese produce usually confiscated or acquired at forced low rates from Chinese owners is being shipped to Japan. The shipment of this American wood oil from Hankow will be opposed by the Japanese who wish to force the American owners to sell to them at prices far below the market.
- 4.
- If the American naval authorities are agreeable I believe that the measures described in the second paragraph of this telegram are practicable and I hope that the Department will feel that it can urge them on the Japanese authorities at Washington and Tokyo.
- 5.
- The loading of 2500 tons of China grass (ramie) destined for Germany is being effected today. The bales are marked Hamburg and will be reshipped to that port from Kobe. The cargo being loaded here belongs to Arnhold and Company, the Nivea Company, and Bunge and Company, British firms, and Schnabel, Gaumer and Company and Carlowitz and Company (German firms, although ramie belonging to other companies is included in the total amount). Rohde and Company are handling the shipment at this end. It is understood that the German authorities in their negotiations for the export of this cargo maintained that it is required by Germany for military purposes.
Repeated to Chungking, Peiping, Shanghai. Shanghai please repeat to Tokyo by air mail.