jm RIASSI AiRICANS'RIGHT1 TO TRADE IN CHINA —— Holds Japanese Interference, Even in Concessions of Other Powers, Is Ruled Out PROTEST MADE IN TIENTSIN U.S. Citizens Suffer Loss From Delay of Shipments and Are Facing a Coal Famine By FRANK L. KXUCKHOHN Special to The new York times. WASHINGTON, Nov. 20-The United States Government insists upon the right of American mer- chants freely to use the British and'French Concessions at Tientsin, China, for trade without interfer- ence from the Japanese, Sumner Welles, Acting Secretary of State, asserted today. He emphasized that the general American view- point on the rights of Americans In China had been made clear to Japan. This assertion, made only a few days after the British and French Governments announced the reduc- ing of their garrisons at Tientsin and other points in China, and In the face of press reports that Japan and the Soviet Union had reached an understanding on the basis of a new commercial agreement, was regarded here as significant. The State Department has denied emphatically that this government would protect the Franco-British concessions at Tientsin and at other points In China where this country has none, and even that the ques- tion was broached, but the in- sistence upon the right of Ameri- can traders to use such concessions would have the practical effect of safeguarding them, according to opinions prevalent In diplomatic circles. With the British attitude toward the Open Door in China apparently " weakening under the pressure of war in Europe, Mr. Welles Indicated strongly that the United States 'still stood by such rights. More Protests to Japanese The Acting Secretary of State re- vealed that American consular offi- cials at Tientsin had protested to Japanese authorities against "in- creasing'! transit difficulties for American goods at the Japanese military barriers around the^fflwigo" concessions. Mr. Welles made his remarks in reply to a question at his press con- ference for which he was obviously prepared, since he read from writ- I ten notes in making his reply. JTJuit the matter was handled In this form was taken to Indicate that the Act- ing Secretary did not want to go to the length of Issuing a formal statement or sohding.'a-. note, per- haps because of current conversa- tions in Tokyo on joint Japanese- York Times, Novembe American problems between United" States Ambassador Joseph C. Grew and Japanese Foreign Office offi- cials. "The American Consul General at Tientsin, John K. Caldwell, nasi been reporting that dlfficultle of' transit atu.the Japanese military barriers around the foreign conces*, slons at Tientsin are increasing," Mr. Welles- said in response to a' question as to developments there. "Mr. Caldwell telegraphed under1 date of Nov. 13 that although there) have been reported only a few cases of delay to American citizens, he has received many complaints of delays, varying from many hou ¦to more than a day, to Am»E goods. "For example, the Japanese mflH tary authorities have required that loads of 'coal and of peanuts bet dumped on the street for inspec- tion. "He has reported under date Nov. 16 that these transit difficulties are"; 'oh the increase. An American rug Manufacturer has complained thati la truckload of rugs proceeding un- der an American pass bearing a Japanese consular visa was refused permission to pass through the bar- rier until the'rugs had been spread ] (out In the street. -Another Amorl? | can had complained of difficulties in bringing food supplies into the concessions. The coal situation was becoming critical although ample supplies of coal are easily available across the rivgr." After reading this Information from a memorandum, Mr. Welles, mads known- 'that representations, already had been made by Amort ;oan officials at Tientsin and assort- ed that the broad American posi- tion on China had been made clear , to Japan. Asked if this government felt that American citizens had a right to carry on trade from the foreign concessions, the Acting Secretary said that it most decided- ly did. 470 in Business at Tientsin As of Jan. 1 about 470 Americans were doing business in the Tientsin area, State Department officials said subsequently: Most of these have headquarters In the British Concession. Mr. Welles denied that there was any connection between his outline of the American position at Tien- tsin and with regard to trade In China In general at this moment and the press reports from Moscow that Japanese and Soviet authori- ties had reached a tentative accord on a new trade pact as an out- growth of the temporary truce be- tween the two countries on the Manohukuoan border and Outer Mongolia. In other circles It was noted, howevers, that a Russian-Japanese accord, particularly if It carried with It an end of current Soviet military and supply aid for the Chi- nese Government, probably would have the effect of strengthening Japan's hand against American and other foreign enterprises In China. The United States, it was also asserted in Informed circles, is in a strong diplomatic trading position wiht regard to Japan since the 1911 American-Japanese trade pact has been denounced by this country and will therefore expire Jan. 26. The r 21, 1939 'Japanese are said to fear an Ameri- can embargo, (particularly because of supoprt for such a move In, the Senate. Coal Supplies Out Off TIENTSIN, China, Nov. 20 «*>-) As wintry weather set in Ameri--, cans presented a singular sight to- day as they tried to bring baskets of coal by jlnriklsha and automo- bile into the British and French Concessions, where the Japanese blockade has caused a coal short- age. United States Marines, unable to obtain coal for the past ten days, attempted,, .to arrange for supplies to be brought by boat down-the~Hat| River from Japanese coal yards that are pileoVhlgh. The blockaded British Concession, facing a growing coal shortage, will be without light; power and water within ten days, authorities said today, unless the Japanese per- mit supplies to enter. The present flow of supplies, it was said, is confined to a limited ration for hospitals and bakeries. The American Consul was report- ed to have applied unsuccessfully* for 'permits to transport coal through the barriers for use American firms. SHANGHAI, Nov/20 (UPX-Nelson T. Johnson, United States Ambassa- dor to China, conferred 'tonight with -^omiral Thomas C. Hart. Commander in Chief of the United States Asiatic Fleet, and ClSrerico E. Gauss; American Consul General In Shanghai. Mr. Johnson arrived from Chung- king by way of Hong Kong aboard' the steamer Presldont Cool Id go. Jgjg will visit Peiplng next week before] returning to Chungking. Admiral Hart and Mr. Gauss soon will proceed to Manila, ostensibly,' for vacations, but It was believed that in Manila they would hold Im- portant conferences on the Far Eaststern situation with Francis B. Sayre, United States High Com- missioner to the Philippines. _