893.796/161: Telegram

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

627. 1. Department’s 247, July 13, 5 p.m. As the Department’s instruction was the first official information of these difficulties [Page 604] received by the Legation and as Olmstead, representative of Pan American Airways, had [not] even mentioned the subject to the Legation a paraphrase of the Department’s instruction was mailed to the Counselor of Legation at Nanking, to which Counselor of Legation has replied as follows:

“July 26, 10 a.m. Your instruction July 17. Bixby, president China Airways, July 25, 3 p.m., in Shanghai gave me information contained in Department’s July 13, 5 p.m., and requested my informal good offices. He added the important information that the Shanghai-Canton line was intended to be ultimately link in trans-Pacific air line of Pan American and pointed out that proposed contract stood for Chinese ‘sovereignty’ since services in China under contract would be performed on behalf of a Chinese concern; viz, the China National Aviation Corporation. I have received apparently reliable information that British as well as German interests wish to obtain permission to extend their respective air lines into China and I respectfully suggest that it would be appropriate and useful for Legation to extend informal good offices on behalf of Pan American. Despatch follows.”

3 [2]. I shall await the receipt of Counselor’s despatch28 before taking further action but am inclined with Department’s approval to instruct him to use his informal good offices.

  1. Not printed.