893.51/11–1345: Telegram
The Secretary of State to the Consul General at Shanghai (Josselyn)
211. 1. Negotiations proceeding slowly on basis Crowley’s discussion of 560 million dollars ExImBank credit with Soong. Rumor reported Urtel 206, November 13, 11 A.M. untrue and little progress in negotiations since Deptel 1705, October 19, 6 P.M. to Chungking.
2. Department now preparing statement on desired undertakings in nature of quid pro quo.
3. Article IX of draft commercial treaty heretofore submitted covers these points. Article VII of Treaty Relinquishing Extraterritoriality80 provided for early conclusion of commercial treaty and [Page 1186] Department probably will urge prompt negotiation as part of undertakings to be requested. Statement in Urtel 206 re machine tool exports immediate prewar years not supported by facts known here. Please send details by airgram.
4. For your confidential information, trade agreement proposals are being formulated and will be brought to China’s attention in due course.
5. Interested divisions and Departments are considering these questions but from point of view of interests of both countries. It is believed that some restriction of imports may prove unavoidable for a time but safeguards should be sought against discrimination.
6. Department believes situation requires consideration of China’s total balance of payments with all countries not merely with United States.
7. Department’s attitude is that credits must be considered primarily in relation to China’s needed rehabilitation and development but interests of this country in trade and investment should be safeguarded.
Foregoing views are provisional not final.
Repeat to Chungking.
- Signed at Washington, January 11, 1943, Department of State Treaty Series No. 984, or 57 Stat. 767.↩