611.9331/11–2045: Telegram

The Consul General at Shanghai (Josselyn) to the Secretary of State

237. Apparently a considerable part of the export cargo at Shanghai, for which shipping space is now being sought for U. S., is owned by collaborationists and possibly also by enemy nationals working through dummies. (This refers to paragraph 9 of 208, November 15, 8 a.m.45 and to Dept’s 145, November 9, 8 p.m.46)

Some headway has been made in Chungking by Embassy toward impressing the concerned Chinese authorities with importance of [Page 1357] clearing obstacles for early resumption of export trade and toward adoption of a liberal attitude regarding exchange rate and control matters. It is presumed, however, that the Chinese authorities will wish to prevent flight of enemy assets and of collaborationist capital and therefore that some sort of screening of export applications will have to be instituted for a time. Consulate General has informally offered to render any possible assistance in order to expedite shipments. This will involve enlistment of cooperation of United States Government intelligence agencies now operating here, if offer accepted, and such processing would unavoidably slow up shipment.

Sent to Dept.; repeated to Chungking.

  1. Ante, p. 1179.
  2. See footnote 41, p. 1355.