611.939/368a: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
382. Reference Shanghai’s 923, September 14, 5 p.m.19 The Department desires that unless you perceive objection you call at the Japanese Foreign Office and make approach along lines as follows:
The Government of the United States refers to the repeated representations which it has made to the Japanese Government during the past 3 years in regard to interference with American trade and enterprise in China by the Japanese authorities there and by local regimes under their control. Those representations, in which the Government of the United States has patiently and persistently called attention to infringements of American rights and interests, have for the most part met with an unsatisfactory response on the part of the Japanese Government. American trade with north China is at a virtual standstill as a result of the network of trade and exchange controls which have been established there over a period of 3 years, culminating in the establishing of complete discriminatory exchange control on June 28.
During recent weeks there have been plentiful indications that trade at the important port of Shanghai is to be dealt with similarly by the Japanese military authorities. American firms have been virtually excluded from the silk trade and arbitrary restrictions upon American trade in petroleum and egg products have been applied with ever increasing vigor by the Japanese military authorities while Japanese firms have been given corresponding advantages. The Government of the United States is now informed that the Japanese military authorities at Shanghai propose to supplement these restrictions in the near future with extensive trade and exchange control measures affecting approximately one-third of Shanghai’s export trade to non-yen bloc countries, measures which include the provision that exchange accruing from exports of certain commodities shall be sold to Japanese banks, thereby injuring with one blow American export and import trade and American banking interests. Having virtually eliminated American enterprise from Manchuria and having reduced American trade and enterprise in north China to small proportions, it is now the apparent intention of the Japanese military authorities to drive American trade and enterprise from Shanghai, the most important trading center in China.
The Government of the United States has taken due note of the recent actual and proposed additions to the extensive list of unwarranted interference by Japanese authorities and agencies in China with American trade and enterprise.
Sent to Tokyo via Peiping. Repeated to Shanghai and Chungking.
- Not printed.↩