File No. 893.5034/26
The Chargé in China ( MacMurray ) to the Secretary of State
In the Government Gazette are now published regulations for a nominal Chinese trading company which appears to be concerted with the gold currency scheme reported in my cipher telegram of August 9, 4 p.m.1
The regulations provide that—
This company will deal in all sorts of raw and manufactured articles both export and import and will act as agents for the Government for companies, business firms, or individuals in handling both exports and imports, limiting itself to accepting only such agencies as are approved by the committee of shareholders.
This company will ask the Government to confer upon it special privileges so as to encourage it in its competition with foreign traders.
- (a)
- All commodities which can be exported or imported only on special permits from the Government shall be handled by company by special permits.
- (b)
- When the Government or any organization under the control of the Government needs articles this company shall be appointed the agent by special permit to purchase the goods required.
- (c)
- In exporting raw materials or manufactured articles and in importing raw materials, machinery, or the like special lines of goods when the special permit of the Government has been obtained the Ministry of Communications shall give the same terms for freight as in transporting Government property and shall fix a favorable exchange to encourage the company.
When the Government wish to stimulate trade in any native products it shall notify this company of the varieties of goods and shall order the company to take measures to increase the import or export as a part of its obligation.
Clause A presumably refers to imports of arms and ammunition and to export of cereals (now required by Japan in view of the rice famine there) and copper cash and possibly iron which this Government is seeking to make a nationalized industry. The paragraph last quoted is understood to refer principally to cotton and wool. …
Unless otherwise instructed I propose to address to the Foreign Office a statement that our Government trusts there is no intention on the part of the Chinese Government to confer any exclusive or monopolistic powers on this company in violation of treaty provisions and that it must claim for its nationals any special privileges which these regulations may be construed to confer.
- Not printed.↩