893.61331/203: Telegram
The Secretary of State to the Consul at Tsingtao (Sokobin)
8. Your 34, March 2, 11 a.m., and your despatch no. 311, December 8, 1939,68 in regard to the difficulties of the Universal Leaf Tobacco Company. It is the Department’s understanding that the Universal Leaf Tobacco Company has been able, notwithstanding protracted negotiations, to purchase only a fraction of the amount purchased by the company under normal conditions and of possible [Page 507] purchases by the company in the absence of restrictions imposed by the Japanese. Your despatch under reference clearly indicates that the company feels that it was forced to accept an unsatisfactory agreement. It is apparent also that the restrictions imposed upon the tobacco purchasing activities of the company in Shantung Province constitute an instance of unwarranted interference by Japanese military authorities with American business and an effective denial of equality of opportunity to American as compared with Japanese interests. Moreover, the Department’s correspondence with representatives of the company does not indicate that the company is optimistic over the situation in Shantung.
Sent to Tsingtao. Repeated to Peiping, Shanghai. Peiping please mail code text to Tokyo.
- Latter not printed.↩