FOREIGN RELATIONS, 1934, VOLUME III



had fixed the schedules deliberately for the purpose of discriminating
against the former, but that the practice followed by the customs
resulted in an unfair discrimination. We said that the practice
seemed to us just as unreasonable as if, to give a hypothetical example,
it should be ruled by the customs that the duty levied on horses was
not applicable to horses under 800 pounds in weight, but that such
horses would [be] assessed the duty provided for cows, such duty
being less than one-fifth that leviable on horses. In such an event
a horse weighing 810 pounds would have to pay a duty more than
five times as great as that a horse 790 pounds in weight would have
to pay.
  Mr. Kanki then asked why the American and British oil companies
did not import the same grades of kerosene that the Japanese com-
panies did. We replied that for forty years they had been develop-
ing good will on the basis of standard products of good quality sold
under distinctive brands, and it seemed unreasonable that they should
now have to discontinue marketing these brands or lower their
quality.
  Mr. Kanki appeared to be satisfied with our explanations, and was
not at all disposed to be argumentative, or to defend the position of
the "Manchukuo" authorities. The outcome of our conversation was
that he promised to present our case sympathetically to the competent
authorities.. I cannot, however, feel optimistic that our representa-
tions will be productive of any direct or immediate results, since I do
not consider that Mr. Kanki is an influential factor in the situation.
Nevertheless, I do consider that our visit will be of indirect benefit
as showing the purpose of our governments to support the American
and British oil companies in their difficulties.
  Respectfully yours,                     JosEPH W. BALLANTINE

894.6363/155 Telegram
  The Ambassador in Japan (Crew) to the Secretary of State

                                 Toxyo, December 22, 1934-noon.
                               [Received December 22-2: 40 a. m.]
  283. Department's 210, December 20, 8 p. m.
  1. I conferred with Clive this morning. He stated that he was in
substantial agreement with us in regard to the proposed procedure
and that although his instructions have not yet arrived he feels war-
ranted in making the proposed informal representations without
further instructions.
  2. As it probably will be impossible to determine from the oral
reply to our representations whether or not the Japanese Government
will "remain adamant", Clive feels that the decision as to the
pro-



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