611.939/217
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received November 15.]
Sir: With reference to my despatch no. 2496, of September 8 [5], 1939,16 reporting attempts of the Japanese military authorities to establish a monopoly of the China egg trade in favor of the Mitsui Bussan Kaisha, I have now the honor to enclose copies of letters dated October 19th and October 23d, from the Henningsen Produce Company, Federal Inc., U. S. A.,17 detailing the local situation in regard to this matter and protesting the seizure of certain egg supplies shipped to Shanghai for this company on Japanese vessels and their diversion to the Japanese monopoly interests.18
I have addressed a protest in this matter to the Japanese Consul General at Shanghai, and enclose a copy thereof16 for the information of the Department.
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The egg supply of Shanghai for the China egg trade comes from nearby Yangtsze delta ports, and from Yangtsze ports up river as far as Wuhu, and other nearby places. Japanese flag shipping, only, is permitted on the Yangtsze. For many months, and until recently, British flag vessels plied to the delta ports of the lower Yangtsze, below the Kiangyin boom; but they have now been driven off by the Japanese [Page 466] military restrictions and other obstacles of Japanese invention, so that only Japanese flag vessels now visit such ports and transport cargo therefrom to Shanghai. While for some time it has been possible for American and other companies engaged in the egg trade to bring their cargoes to Shanghai by this means, it is now reported that the Japanese military authorities have directed that such traffic shall cease and that all supplies carried by the Japanese flag vessels shall be diverted to the Mitsui Bussan Kaisha, in support of the attempted Japanese monopoly.
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Respectfully yours,