693.116/78: Telegram

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

697. Legation’s 692, August 18, 10 a.m. Following from Consul General at Canton to Legation and Nanking:

“August 18, 4 p.m. My August 17, 10 a.m. I received a note today from the Inspector General of Foreign Affairs quoting an instruction to him from the Southwest Political Council to the effect that the restrictions in article 4 of the provisional regulations of factory establishments are not applicable to firms composed of entirely foreign capital and confirming the promulgation of the regulations governing the importation of special liquid fuel. These regulations were forwarded in my despatch of July 10th.90

To test the effect of this announcement the foreign companies are applying directly for registration in accordance with the regulations above mentioned with a view to obtaining permits to import liquid fuel and the release of sealed-up stocks. I am advising them of the contents of the Legation’s circular instruction No. 69 of [Page 580] October 30, 1930, in case it should develop that registration involves any control of their business by the Chinese authorities.”

The Legation’s circular instructions referred to was based upon the Department’s instruction to the Legation No. 266, September 26, 1930.91