893.113 Arrow Air and Motors Corp./20: Telegram
The Secretary of State to the Ambassador in France (Edge)
62. Six strictly commercial aeroplanes sold by the Arrow Aircraft and Motor Corporation of Havelock, Nebraska, to Yunnan Aviation Bureau of the Government of Yunnan Province, China, under terms whereby title remains with seller until delivery at Yunnanfu, are now being detained by authorities at Haiphong and transit permit refused on the ground that planes of any description are regarded by France as war material.
Department was informed January 29 that French authorities require [Page 583] approval of Chinese National Government through French Legation, Peiping, before issuing transit permit. Under date February 13, American Consul, Saigon, informed Department that, after understanding that French Legation, Peiping, had approved transit of planes he received a telegram from the Governor General of Indo-China stating that the matter had been referred to his Government.
You are requested to ask for expeditious action in regard to this matter and to report promptly to the Department.
Department is informed that the obstructive attitude of French authorities is due to disappointment over refusal of Yunnan Government to buy French planes offered in competition and that if the French authorities succeed in preventing safe and timely arrival of these planes the legitimate market for American products in Yunnan Province will be seriously impaired.