The Ambassador in China (Gauss) to the Secretary of State
[Received January 13—9:17 a.m.]
84. Does Department contemplate early initiation of negotiations for a Sino-American commercial treaty? See paragraph 4 of my 2361, December 9.1
As the progress of formulating China’s future economic and commercial policies including policies in regard to foreign investments and other foreign commercial interest are already actively under way in some Chinese Government quarters, I feel strongly that this matter should not be longer delayed unless we are to face established reactionary policies which will be difficult to overcome. Furthermore the setting up of UNRRA2 has quickened widespread Chinese hopes for American assistance on a large scale in the rehabilitation of communications and industries and I am of the considered opinion that our bargaining position at present is as good as if not better than it is likely to be later on.