393.115 Standard-Vacuum Oil Co./108: Telegram
The Secretary of State to the Counselor of Embassy in China (Lockhart), at Peiping
77. Reference your 169, April 3, 5 p.m.,43 seizure of funds in hands of Chefoo agent of Standard-Vacuum Oil Company. While the Department does not wish to offer a definite opinion in regard to the ownership of the funds in question, it offers the observation that a fair test of ownership would seem to be whether a legal claim for recovery [Page 312] of the money would be presentable by the company or be presentable by the agent.
The Department suggests that the Embassy make an approach to the Japanese Embassy and request return of the money on the ground that seizure of the money constituted an unwarranted interference with American business. If the Embassy is of the opinion that a claim for recovery would properly lie with the company it should state that the property seized is the property of the company. If the Embassy should conclude that claim for recovery would properly lie with the agent the Embassy should state that the seizure was of property in which an American company has a direct and material interest.44
Repeated to Chefoo and Tsingtao.