The Vice Consul at Yunnanfu (Reed) to the Secretary of State

No. 199

Sir: In accordance with the Legation’s Confidential Circular No. 287, dated June 4, 1934,30 concerning the regulations to be enforced for the exportation of arms and munitions of war to China, in which it was instructed that the Department and Legation should be informed of any circumstance which made such regulations inequitable and placed American exporters at a disadvantage, I have the honor to transmit herewith copies in quintuplicate of this Consulate’s Despatch No. 176 to the Legation, dated July 21, 1934.30

As far as the authorities in Yunnan are concerned there is no discrimination between importers of the various nationalities and the Provincial Government would be pleased to issue its temporary “huchao” for the importation of American, British, and other, arms, munitions of war, and/or airplanes. The Chinese Maritime Customs would presumably accept such a temporary “huchao” or guarantee. But the Government of Indo-China, while contenting itself with a “laissez passer” from the French Consul at Yunnanfu for the exportation of French items, would, if past experience be any criterion, seriously oppose transit of non-French items without the production of an actual Central Government “huchao”.

Since the enclosed observations may be of interest to other Departments of the United States Government, quintuplicate copies are enclosed.

Respectfully yours,

Charles S. Reed II
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