File No. 763.72112A/1431

The Secretary of State to the Minister in China ( Reinsch )


Your June 14, 4 p.m. Purchase by American firms in China of property of German subjects, or of firms including German subjects as partners, not prohibited where such subjects are not enemies within the terms of Enemy Trading Act or proclamations issued [Page 441] thereunder. Not proper, therefore, for you to approve or disapprove such transactions. However, where in your opinion benefits to American firms outweigh benefits accruing to Germans, you may encourage transaction.