893.5034 Registration/12–2045: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received 1:25 p.m.]
2191. In informal conversation with Chargé Dr. Kan Nai-kuang, Vice Minister Foreign Affairs, stated that company law would no doubt be returned to Legislative Yuan for further consideration prior to its promulgation and enforcement which now cannot occur on January 1 as previously announced. Dr. Chang Chao-yuen, drafter of law, has also stated it will be returned to Legislative Yuan for further consideration but he could not state definitely that articles 7 and 292 will be revised in the way American business desires. Deadline for registration of foreign companies, Dr. Chang stated, would undoubtedly be postponed pending promulgation of new law.
Chinese find difficulty in understanding objections of American business to articles 7 and 292 or why American business would hesitate to incorporate under Chinese law as they do under laws of other countries. Embassy is endeavoring to make as convincing representations as possible of the Dept’s views and those of American business on these points. Dr. George Sellett, Honorary Legal Adviser, China–America Council, is assisting on discussions.