893.5034 Registration/74: Telegram

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

905. In regard to registration of foreign firms reference is made to Embassy’s 920, May 27, 3 p.m.

Several American firms have been advised recently by their representatives in Chungking that foreign firms must register not later than July 31.
Department has received from National Foreign Trade Council and from China-America Council of Commerce and Industry, which was recently organized to promote trade with China, letters requesting that the Minister of Economic Affairs be urged to grant a further extension of time in the matter of registration. These organizations have also again pointed out that many provisions of the existing regulations are ambiguous and onerous and that therefore American firms are extremely reluctant to register. They express the hope that it may be possible to induce the appropriate Chinese authorities to facilitate registration under a simplified procedure. They have [Page 991]also inquired whether there are any indications that British firms intend to register under existing regulations.
Department realizes that question of registration under existing Chinese laws and regulations is a matter of very real concern to American firms and desires therefore that you call on the Minister for Economic Affairs and (1) request that a further extension of time be granted, (2) emphasize the concern felt by American firms in regard to many provisions of the regulations pointing out to him those of particular concern and (3) urge the Minister to facilitate this step, the first to be taken by American firms under the new conditions which now prevail in China following the abolition of extraterritorial rights, by clarifying and simplifying the procedure for registration.
Department feels this matter is of importance as indicating whether or not the Chinese authorities are disposed to follow liberal and reasonable commercial policies vis-à-vis Americans desiring to trade in China. Department desires therefore that you emphasize the special significance of this matter and its important bearing upon future commercial relations between the United States and China.