893.113/1562
The Secretary of State to the British Chargé (Osborne)
Sir: The receipt is acknowledged of the British Embassy’s note No. 265 of August 4, 1934, inquiring whether information to the effect that the American Government is prepared to prevent the export of arms to China, except in cases approved by the central Chinese Government, is correct, and, if so, what categories of armaments are covered, whether they include aircraft in any or all forms and by what methods the American Government is seeking effectively to attain the desired end.
In reply I may say that since March 4, 1922, the American Government has controlled the export to China from the United States of arms and munitions of war in conformity with the Proclamation of President Harding of that date, issued in pursuance of the Joint Resolution of Congress approved January 31, 1922, and that the limitations prescribed operate to restrict very closely the exportation to China of munitions of war. A copy of the Proclamation of March 4, 1922, is enclosed.32
The Chinese Minister at Washington addressed a note to the Department, under date April 20, 1934, and the Chinese Minister for Foreign Affairs addressed a similar note under date April 21 to the American Minister at Peiping,33 stating that the shipment of munitions of war from abroad into China should be covered by permits formally issued by the Central Government and that these permits should be submitted to the Chinese diplomatic mission in the country of export for examination and certification prior to the time of shipment. In reply to these notes, the Department authorized the American Minister at Peiping to inform the Chinese Ministry of Foreign Affairs that the American Government would continue, as heretofore, to exercise strict control over the export to China from the United States of arms and munitions of war; and that the regulations governing the exportation from the United States of arms and munitions of war, as amended, now provide that exportation will be permitted when (a) an application for license to export has been submitted by [Page 509] the firm or firms in the United States which desire to make shipment and (b) the Department of State has been informed through appropriate diplomatic channels (ordinarily, the Chinese Legation in Washington) that it is the desire of the Chinese Government that export of the shipment be authorized. The American Minister to China was instructed to state also that the American Government effected this change in procedure upon the understanding that the Chinese Government would enforce its regulations uniformly in respect to all imports of arms and munitions of war irrespective of source and in such manner as to insure that American exporters would not be placed at a disadvantage as compared with exporters of other nationalities.
The present procedure of the American Government and a list of the articles for which licenses are required for exportation to China are set forth in a statement issued by the Department of State under date May 28, 1934, entitled “Revised Regulations in Regard to the Export to China of Arms and Munitions of War”. A copy of that statement is enclosed,34 together with a form of application for license to export.35
I may say also that with a view to making as effective as practicable our control of the export to China of arms and munitions of war, we have for a number of years proceeded upon the presumption that under present political conditions in China shipments from the United States to Hong Kong and Macao of arms and munitions of war are destined for China and unless that presumption can be overcome by the exporter in the United States, the exporter has been required to make application for license to export.
The present procedure of the American Government in regard to the export to China of arms and munitions of war is substantially that which has been followed for a number of years. In this connection there are enclosed copies of statements issued on this subject by the Department of State under dates June 2, 1930,36 and June 30, 1933.37 By reference to these statements you will note that the procedure now in effect is practically identical with that set forth in the statement of June 2, 1930. In 1933 the American Government effected a change in the procedure, providing that exportation of arms and munitions of war for the use of Chinese official authorities (including those of subdivisions) would be permitted in all cases with regard to which the firm or firms in the United States desiring to make shipment had submitted to the Department of State an application for [Page 510] license to export and with regard to which the Chinese Government had not through authorized channels made to the Department of State request that shipment be not permitted. This change was effected primarily to remove the disadvantages under which American exporters to China were placed in comparison with exporters of other nationalities. These disadvantages were apparent particularly in reference to the export trade to South China and resulted largely from the facts (a) that the Hong Kong authorities appeared willing to permit shipments to China on the basis of import permits issued by local Chinese authorities, (b) that the British Government, due to the provisions of the Barcelona Convention, was unable to exercise control over transit shipments through Hong Kong, and (c) that there existed lack of uniformity in interpretation among various exporting nations as to what constituted military aircraft. I may add that before inaugurating the change in procedure set forth in the statement of June 30, 1933, we made a number of inquiries of the British Government in regard to British regulations and procedure applicable to the import into South China via Hong Kong of arms and munitions of war.
With regard to the British Embassy’s inquiry as to what methods the American Government proposes to follow to the end that the results aimed at may be attained, it may be said that the Department and American diplomatic and consular officers in China are following with care important developments in the situation in regard to the import into China of arms and munitions of war and are giving special heed to the question whether the Chinese regulations, as enforced, result in placing American exporters at a disadvantage as compared with their principal foreign competitors. The concern of the American Government in this connection is similar to that of the British Government, namely, we desire to prevent the development or the continuance in China of conditions of domestic violence and to cooperate with the Chinese Government in its efforts to maintain an effective control of the import into China of arms and munitions of war. At the same time we would not wish that American exporters of such commodities be placed at a disadvantage as compared with their principal foreign competitors. In this connection I may say that one of our principal difficulties has arisen from what I understand to have been the practice of the British Government to consider all aircraft as commercial, and therefore not subject to restriction, unless actually armed at the moment of importation into China. This Government has regarded and continues to regard as military aircraft (a) all types of aircraft actually fitted with armor, guns, machine guns, gun mounts, bomb dropping or other military devices, [Page 511] and (b) aircraft presumed to be destined for military use, whether actually fitted with armament or not. The difficulty with which we have been confronted in the past would be removed if the British Government could see its way clear to adopting a substantially similar interpretation in regard to what constitutes military aircraft. I should be glad to be informed in regard to the British Government’s decision on this point.
When the British Government has completed its present consideration of the subject of the export to China of arms and munitions of war, I should appreciate being informed in regard to the conclusions reached in the matter.
Accept [etc.]
- See Foreign Relations, 1922, vol. i, p. 726.↩
- See telegram No. 196, April 28, from the Minister in China, p. 491.↩
- Ante. p. 497.↩
- Not printed.↩
- Department of State, Press Releases, June 7, 1930, p. 273.↩
- Foreign Relations, 1933, vol. iii, p. 563.↩