31
NO DISTRIBUTION.
Decode. Si M. Phillips (Shanghai).
October 25th 1938.
D. Wireless.
October 26th 1938.
R.
5.00 p.m.
No. 277.
(R).
October 26th 1938.
Addressed to Embassy No.231 of October 25th.
Chase Bank having to ship to America silver valued at over
3 million dollars, consignment was loaded on s. s. "President
Coolidge" on October 23rd. All customs formalities had been
completed and permit to ship had been issued when Autonomous
Government, doubtless at the instigation of Japanese authorities,
brought pressure to bear on customs to revoke permit. Reason
given was that equalisation tax on consignment had not been
paid, thus proving that it was Chinese Government property.
I have not yet been able to ascertain precise ownership but I
understand part at least was collateral for loans advanced by bank.
Following negotiations between customs and American and Japanese
Consuls General silver was unloaded and returned to bank.
was delayed here for 24 hours.
The ship
2. It is understood that Chase also had [ grp. undec.]
consignment of silver from Hongkong but that no question regarding
this was raised.
Repeated to Foreign Office, Tokyo No.156, Commander-in-Chief No. 85, copy to Commercial Counsellor and Naval Liaison Officer.