File No. 611.9331/36
Minister Reinsch to the Secretary of State
Peking, October 18, 1916, 7 p.m.
In general the Chinese Government has maintained that flour is included within the treaty stipulation forbidding export of grain. This construction clashes with the interests of the Americans concerned who do not desire to ship flour from China but to prevent a situation enabling Shanghai mills to export flour milled from wheat bought far below world’s current price because of prohibition of export: removal of this prohibition on wheat would partially restore the price balance. The exportation of flour with a restriction on wheat would be disadvantageous to our interest.
In order to prevent further export of native milled flour I beg to request authorization to state to the Minister for Foreign Affairs that in the event of the Government’s granting any other exemptions in favor of Shanghai mills we must consider that it thereby waives the treaty powers of prohibition and entitles Americans export either grain, flour.