611.939/302: Telegram
The Consul at Swatow (Yearns) to the Secretary of State
[Received 3:13 p.m.]
15. Department’s 7, April 24, noon. Last August the International Embroidery Association of Swatow appointed one member to represent the association in negotiations with the Japanese authorities regarding shipments of merchandise and importation of material. He approached the Japanese Consul who referred him to Mitsui Bussan Kaisha; the representative was given to understand by the Consul that decisions or arrangements with Mitsui had the full respect and backing of the Consulate. (See my despatch 17, April 180 which has gone forward to the Department.)
The representative states that Mitsui’s original proposal for a 12% ad valorem assessment on the linen was later reduced to 11%. There was no written agreement concerning the conditions upon which the importation was to be allowed but the verbal discussions and arrangements made were accepted by the association. Each firm was given a receipt for the amount paid on April 17. The representative states that Mitsui had to obtain permission of the military before the material was imported. Mitsui also informed the representative that 1 percent of the assessment will be abolished by that firm and that 10% would go to the local authorities as a “voluntary contribution.” The disposition of the payments made by merchants cannot be ascertained but it is believed that very little is turned over to the local authorities.
Repeated to Peiping.
- Not printed.↩