693.002/1154
Memorandum by the Third Secretary of Embassy in China (Sprouse) to the Ambassador in China (Gauss)85
Subject: War-time Regulations Governing Imports and Exports.
During a call this afternoon on Mr. Rouse of the Chinese Maritime Customs concerning another matter I took the opportunity of inquiring about the recently announced regulations governing imports and exports. Mr. Rouse stated that to all intents and purposes unlimited trade between Free China and the occupied areas was now permitted under the regulations, that the Government recognized the impossibility of preventing such trade, that Free China was greatly in need of various articles produced in the occupied areas or in Japan and that the Chinese Government sanctioned the trade as a means of obtaining [Page 536] the commodities desired and as a means of revenue which would otherwise be lost because of smuggling. Mr. Rouse was of the opinion that regardless of what articles were on the prohibited list, such as wood oil, they would continue to be exported to the occupied areas.
- Copy transmitted to the Department by the Ambassador in China in his despatch No. 580, August 18; received September 10.↩