693.0031/12–1844

The Appointed Ambassador in China (Hurley) to the Secretary of State

No. 15

Sir: I have the honor to refer to the Department’s telegram No. 1522, November 23, 5 p.m., and to the Embassy’s telegram No. 1978, December 8, 11 a.m., regarding a statement of commercial policies reportedly under consideration by the Chinese Government, and to enclose a copy of an oral statement on that subject dated December 1, 1944, which was handed by an officer of the Embassy on December 2 to Dr. K. C. Wu, Political Vice Minister for Foreign Affairs.

As indicated in the Embassy’s reference telegram, Dr. Wu stated on December 2 that he had no knowledge of such a statement but would investigate the matter. On December 7, he stated informally to an officer of the Embassy that no statement had been drawn up but that proposals to do so had been made by interested Chinese officials and that an official response to the Embassy’s approach would be made soon.

Respectfully yours,

For the Appointed Ambassador:
George Atcheson, Jr.
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[Enclosure]

The American Embassy to the Chinese Ministry for Foreign Affairs

Oral Statement

It is understood that the Chinese Government has under preparation a statement of general principles governing postwar commercial policy which may contemplate, inter alia, the adoption by the Chinese-Government of a moderately high tariff with provisions for adjustment on a bilateral rather than a most favored nation basis. It is also understood that the statement is in an advanced stage of preparation for public issuance in the near future.

The American Government is concerned lest this statement may-commit the Chinese Government to the adoption of commercial policies at variance with the principles stated in the Atlantic Charter and in the Mutual Aid Agreement between the United States and China, and with the liberal trade policies to which the American: Government is endeavoring to obtain general adherence. In this, connection, attention may be invited to the importance which the American Government attaches to the principles of the enjoyment by all nations of access on equal terms to trade and of collaboration in the economic field which are enumerated in the Charter, and to the provisions of Article VII of the Mutual Aid Agreement which looks toward the elimination of all forms of discriminatory treatment in international trade and in the reduction of tariff and other trade-barriers.

Adoption by the Chinese Government of a statement of postwar commercial policies calling for increased tariff protection, with provision for adjusting tariff rates on a bilateral rather than a most favored nation basis, does not appear to be capable of reconciliation with the foregoing principles. Further, adoption of such a statement would increase the difficulties encountered by the American Government in its efforts, at home and abroad, to gain widespread adoption and implementation of liberal trade policies. In this task the American Government has relied on the wholehearted support and cooperation of the Chinese Government.

The American Government is consequently concerned as to the precise wording of the proposed statement and the hope is expressed that the Chinese Government will not adopt a statement on commercial policy which would make more difficult the negotiation of the proposed Sino-American treaty of friendship and commerce.