893.74/597: Telegram

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

349. My telegram number 345, August 22, 4 p.m.

1.
Chief Executive yesterday gave me the assurance that Federal contract was recognized as valid and that effect would be given to it. …
2.
I am frankly doubtful however whether any positive result was achieved as I am unable to get him to give any definite assurance as to the time and manner of giving effect to the contract. He confined himself to saying that he would instruct Ministries of Communications and Foreign Affairs to seek a solution satisfactory to all interested nationalities and remarked that this was a matter in which the Japanese had an interest that entitled them to be heard.
3.
I concluded the conversation by saying that while I did not expect of him an immediate answer as to the intentions of his administration [Page 917] I intended shortly to address to the Ministry for Foreign Affairs a request for an early and definite statement on the subject and had consulted him in order that the reply might represent his considerations.
4.
In order not to lose what impetus has been given to the matter my proposed note to the Minister of Foreign Affairs should be in his hands in time for consideration at the Cabinet meeting Saturday morning. Considerable weight would be added to it if I could quote you directly as instructing me to make such a request for information as to the intentions of the present regime here; but if it is not possible to receive your authorization by Friday morning I shall send a note in the sense indicated below on my own responsibility and omitting the reference to instructions from you.
5.
The Department [proposed?] note, after recalling the conversations I have had with the Minister for Foreign Affairs and with the Chief Executive and reciting that the desire and readiness of the American interests concerned with the contract have been thus far defeated by the action of the Chinese Government, would go on as follows.
6.
So recently [as] the 24th instant His Excellency the Chief Executive assured me that contract in question was recognized as valid and would be put into effect. While welcoming this renewed assurance in view of the importance that attaches to this matter not only as one involving a contractual obligation to American nationals but also as affording a test of the principle of the equality of opportunity in China, I must repeat that it is now necessary to know definitely whether early effect will be given to the contract. As I have explained both to you and to His Excellency the Chief Executive, time is important to the American companies concerned; and a further reason for making clear the position of the Chinese Government in this matter had now arisen in consequence of the fact that the American Government is at the present time under the necessity of taking stock of international situation in China and formulating policies for its own guidance in dealing with the records [sic] to be discussed at the Special Conference.24
7.
With a view to assuring itself whether or not it can count upon the continued support and cooperation of the Chinese Government in maintaining the principle of equality of opportunity which is the basis of Washington Conference treaties and of the forthcoming Special Conference to be held thereunder, my Government has instructed me to ask for an early and definite statement whether the Chinese Government will without hesitation give effect to the Federal [Page 918] contract, and, if so, on what date may it expect such action to be taken.
8.
I earnestly request your express authorization to present the matter in this way.
9.
Copy by mail to Tokyo for information.
10.
I suggest informing Radio Corporation of the substance of the above.
MacMurray
  1. Special Conference on the Chinese Customs Tariff; see pp. 833 ff.