"Notwithstanding these assurances, the provisional "regime in Peiping announced on July 30 the inaugura-ion, og of the following day, of the China Telephone and Telegraph Company, the reported purpose of this organization being to control and fo have exclusive operation of tele phone and telegraph communications In North China. There was organiz~ ed in Shanghai on July 31 the Central China Telecommunications Company, and the special service section Jor the Japanese Army has informed foreign cable and telegraph companies that the new company proposes to control all the tel communications in Central China, [According to a semi-official Japan-fosse press report, there was or fat Shanghai on' July 28 the Shanghai Inland Navigation Steamship ]Company, to be controlled by Japan-Jose, the reported object of which is control water transportation in he Shanghai delta area. According {to information which has reached Government a Japanese company has been organized to take over and Joperate the wharves at 'Tsingtao which have hitherto been publicly Jowned and operated. Should' such a Jdevelopment occur all shipping of whatever nationality would become Jdependent upon a Japanese agency or allotments of space and stevedore Ing facilities. The wool trade in [North China is now reported to be a JJapanese monopoly. and a tobacco monopoly in that area is reported to be in process of formation. More-lover, according to numerous reports which have been reaching my Gov-Jernment the Japanese Government proceeding with the organization of {two special promotion companies which it has chartered and which It will control with the object investing tu, unifying and regulating the administration of certain largo sectors of economic enterprise in "The developments of which 1 have made mention are illustrative Jor the apparent trend of Japanese policy in China and indicate clearly thatthe Japanese authoriiets are seeking to establish in areas which have come under, Japanese military occupation general preferences for, Jand superiority of, Japanese interests, fan inevitable effect of which will be to frustrate the practical application of the principle of the open door jand deprive American nationals of Jequal opportunity.
"I desire also to call Your Ex-Jcellency's attention to the fact that unwarranted restrictions placed by the Japanese military authorities upon American nationals in China—notwithstanding the existence of American treaty rights in China and the repeated "assurances of the [Japanese Government that steps had been taken which would insure that American nationals, Interests and. would not be subject to unlawful interference by Japanese uthorities—further subject American interests to serious inconvenience and hardship. Reference especially to the restrictions placed by the Japanese military upon Amer-tean nationals who desire to re-enter and re-occupy properties from which they have been driven by the hostilities and of which the Japanese military have been or still are int occupation. Mention may also be made of the Japanese censorship of and interference with American mall and telegrams at Shanghai and of restrictions upon freedom of trade resid-ree and travel by Americans, me I toding the use of railways chipping {end other facilities. While Japanese merchant vessels are carrying Japan: ese merchandise between Shanghai and Nanking those vessels decline 10 carry merchandise of other countries, and American and other non-Jepan:
Text read from the printed page and cleaned; old type leaves the occasional error.