File No. 763.72112A/2640

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

[Telegram]

For Denby [from War Trade Board]:

Your 31, August 9, 5 p.m. Appreciate advantages having legal status of American commercial dealings with enemy in China fixed by legislation. Difficulties procuring amendment undoubtedly mean several months’ delay. Pending such amendment suggest your handling matter by informal advice to refrain from business transactions with houses on British list or considered objectionable by our representatives in China. Where contract with objectionable firm, enforceable in local courts, is existing it is proper to sanction performance of contracts. New transactions, however, should be discouraged. Party refusing to adopt suggestions of Legation or consuls should be reported to Washington as trading with enemies for action by War Trade Board upon applications for export or import licenses.

Lansing