893.51 Salt Funds/241: Telegram

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

197. Your 503, August 21, 8 a.m., in regard to foreign personnel of the Chinese Government Salt Administration. On October 12 the British Embassy here presented to the Department an aide-mémoire in which there was outlined the unfavorable service conditions under which the foreign personnel of the Salt Administration is operating and in which a statement was made that the reduction that has been and is occurring in the authority and responsibility of the foreign personnel will, if permitted to continue, so gravely impair the efficiency of the Salt Administration service that one of the best sources of revenue in the country will no longer be available for rehabilitation purposes in the same measure as before, if and when the Chinese Government regains control over China. An expression of this Government’s views was requested in regard to some form of parallel approach to the Chinese Government by representatives of the American, British and French Governments.

[Page 866]

The Department is replying that the question under reference was given consideration during the past summer and that, having in mind all of the circumstances affecting the situation of the foreign personnel, the Department came to the conclusion that a formal approach to the Chinese Government might be construed as a misplacing of emphasis and as a lack of appreciation of the grave situation in which the Chinese Government finds itself. The Department is adding, however, that it is now requesting that you informally use your good offices, as appropriate occasion therefor occurs in your conversations with the responsible Chinese officials, to the end that the service conditions of the foreign personnel in the Salt Administration may be improved. Please be guided accordingly.

Sent to Chungking. Repeated to Peiping and Shanghai.

Hull