803.85/10–2745: Telegram

The Secretary of State to the Chargé in China (Robertson)

1864. Chinese shipping requirements outlined inurtel 1878, October 27, 1 p.m. have been discussed with Maritime Commission, War Shipping Administration, who do not confirm Chinese Government’s understanding that N–3 type ships are lying idle, but advise you following action in process to relieve Chinese shipping stringency.

1.
War Shipping Administration has submitted to representatives of the Chinese Government a list of vessels presently in Eastern waters which are privately-owned by American citizens. Upon receipt of advices from the Chinese as to the suitability of these vessels for their purposes, the Maritime Commission’s Division of Vessel Disposal and Government Aids will confer with representatives of the Chinese in an effort to consummate arrangements incident to the acquisition of the vessels by the latter.
2.
In order to meet bulk cargo movements on the Chinese coast, principally of coal and rice, the War Shipping Administration is making available 5 Libertys and the Ministry of War Transport is making available 6 equivalent ships already in the Chinwangtao coal program, and hope to be able to provide additional tonnage to meet the balance of the program which it is estimated will require 20 ships all told. In addition to the above, the Ministry of War Transport advises that they aim at making available 100,000 gross tons of coastal shipping for the China coast, of which 50,000 should be achieved by the end of the year and the remaining portion by May of next year.
3.
The Maritime Commission has authorized offering 10 N–3 type vessels for sale under competitive bid, under conditions which will permit United States citizens and foreign interests to submit bids. Representations in respect to Chinese requirements forshipping have been received by the Maritime Commission and War Shipping Administration from various Chinese sources, and they suggest desirability our ascertaining and advising them the proper channels through which discussions and possible negotiations relating to the purchase of vessels should be pursued with Chinese Government. Please discuss this point with Chinese authorities and advise.

War Shipping Administration further advises that in response to recent Chinese representations with respect to possible rapid transfer of vessels under some emergency procedure, question of accomplishing such transfer was explored, but that War Shipping Administration and Maritime Commission have not found it feasible, at this juncture, to take other action than that above indicated, and they have so advised Mr. Huang, Attaché of Chinese Embassy in Washington.

Byrnes