File No. 763.72112A/2130

The Acting Secretary of State to the Chargé in China ( MacMurray)

[Telegram]

For Denby from War Trade Board:

Your No. 21, July 8, 5 p.m. and your No. 25, July 17, 1 p.m. It is very doubtful whether Enemy Trading Act is enforceable in China [Page 443]in respect to Americans there who trade with the enemy within the definition of the act or in respect to the establishment in China of a representative of the Alien Property Custodian to receive German funds or other property. If, however, the number of Americans and the importance of their transactions is considerable, and if they desire voluntarily to conform to the provisions of the Trading with the Enemy Act as applied by the War Trade Board, it might be feasible to send to Peking some one familiar with the application of the act in this country, who could informally counsel and advise Americans in China. Please cable us your opinion on this aspect of the matter.

Polk