811.503193 Manchuria/21: Telegram
The First Secretary of Embassy in China (Smyth) to the Secretary of State
[Received 2:30 p.m.]
313. Following from Mukden:14
“13, September 2, 1 p.m. Upon learning that Ambassador Steinhardt15 was on his way through Manchuria and was to be my overnight guest, President Aikawa of the Manchurian Heavy Industries Company at the instance of Foreign Minister Matsuoka insistently demanded that I arrange a meeting with him. This I effected by inviting Aikawa to a dinner which I gave for the Ambassador. During a private conversation with the Ambassador before dinner Aikawa expressed his disappointment at the failure of American capital to interest itself in the development of Manchuria to which the Ambassador replied that he was not competent to discuss matters outside of his own jurisdiction but that speaking as an individual American he felt that the treatment given and now being accorded American capital in Manchuria and occupied China precluded the possibility of further investment under present conditions.
I gained the definite impression that Aikawa was gravely concerned over the immediate future of Manchukuoan economy and that he hoped for some encouragement from the Ambassador as well as his aid in enlisting American capital for Manchukuo. According to Aikawa’s American adviser who was also present, the Ambassador’s plain words while causing Aikawa disappointment deeply impressed him with their sincerity and evident truth. The atmosphere was extremely cordial throughout and I think that the talk did a lot of good. The reception given Mr. Steinhardt here was worthy of visiting royalty. The President of the South Manchurian Railway Company besides entertaining him supplied an aide to facilitate his travel all the way to Manchuli. This reception along with the other developments mentioned in my despatch 474 of August 1616 confirms my belief [Page 537] that our position here is vastly improved and as pointed out in my letter of July 31 to Mr. Grew of which I sent you a copy16a that the chief concern of Japanese diplomacy now as reflected here is relations with the United States.
Please repeat to Tokyo and Moscow.”
Mukden’s despatch to the Embassy 474 of August 16 states inter alia that the recent events in relations between the United States and Japan such as our successive restrictions on exports of certain items badly needed by Japan, our mystifying fleet moves in the Pacific, our enormous naval appropriations, our bold assertion of extraterritorial jurisdiction in Manchuria and the narrowing down to the United States of powers standing firm on their rights in China might well lead one to expect that the United States would be the principal object of nationalistic and editorial attack and that the personal safey of American travelers and residents may be endangered.
Mr. Langdon states, however, that the very opposite seems to be the case. He says that American news is published fully without editorial comment and that as a rule the tone of the press is restrained and respectful towards the United States.
He says that nothing is permitted to be done or written publicly that might arouse anti-American feeling. He states that no incidents or discourtesy have been reported by American travelers and that local American residents have had no reason for complaint against the authorities for several months. In August American residents were allotted more coal than other foreigners including Japanese. He says that the relations of the Consulate General with the local authorities and those at Hsinking continue harmonious and that recent representations to them have met with some success. He expresses the opinion that recent experiences and treatment of Americans in Mukden have been unusual and indicate that if a “fifth column” movement or scare against foreigners is being worked up it will probably not be aimed against or affect Americans.
Sent to the Department, repeated to Chungking, Tokyo, Moscow.