893.0443/11–344: Telegram
The Acting Secretary of State to the Ambassador in China (Gauss)
1430. The Chinese News Service, New York City, under date of October 28, has released the following item:
“A draft of China’s trade law has been completed by the joint effort of various authorities concerned and submitted to the Government to go through the procedure of legislation. Upon its adoption, this trade law will serve as the basis for negotiating commercial treaties with foreign powers in order to establish equitable international trade relations,
Although many friendly powers have relinquished special rights in China, yet commercial treaties to be concluded on the basis of equality and reciprocity are still in the stage of negotiation. Moreover, China’s foreign trade has practically come to a standstill on account of the war. It is expected that the conclusion of new commercial treaties after the war will open new avenues of development for China’s trade with foreign countries.
Measures concerning the employment of foreign investments and technical assistance have been drafted by the Ministry of Economic Affairs and submitted to the Executive Yuan for approval. It is learned that the spirit and purpose of the legislation is to provide the maximum amount of rights to foreign investors and technical collaborators and to ensure the safety and profits of foreign capital.
[Page 1084]The draft of these measures was drawn up by Minister Wong Wen-hao in accordance with a resolution adopted by the 12th Plenary Session of the Central Executive Committee of the Kuomintang. Regulations regarding the use of foreign investments and foreign technical assistance by water and electric power companies as well as by industrial and mining enterprises are said to be given in detail.”
As the Embassy is aware, the Department is very much interested in developments related to the foregoing and would therefore appreciate the Embassy’s making an effort to secure such summaries or actual texts of the trade law and other measures above referred to or any other pertinent information which may be available.