893.5034 Registration/12–2945: Telegram
The Consul General at Shanghai (Josselyn) to the Secretary of State
[Received December 29—10:23 a.m.]
428. There are in Shanghai a large number of companies incorporated under China Trade Act in which as Department is aware American financial interest is negligible. Chinese Govt Alien Property Administration, to which application must be made by all firms for repossession of property, both real and personal, requires Consular endorsement on application for repossession, that applicant is an American company. I am aware, of course, of Department’s instructions that Consular assistance may not in all cases be extended to China Trade Act companies and, in line with those instructions, I have heretofore certified applications for repossession of property only in cases in which there is a showing of substantial American financial interests. I believe, however, that since the China Trade Act permits firms to incorporate as District of Columbia corporations without requirement of American financial interest, it is no more than fair that the Consulate recognize such companies as American companies to the extent of so certifying their application for repossession of their property. The same will hold true of Delaware corporations, many of which do not have substantial American financial interest.
[Page 1257]Department’s instructions are requested by telegraph as the matter is urgent.71
Sent to Dept; repeated to Chungking.
- In telegram No. 21, January 5, 1946, the Department concurred in the suggested action, “namely that for sole purpose of repossession of property from Chinese Govt Alien Property Administration Consulate should recognize American character of companies incorporated in U. S. regardless of nationality of controlling interest or ownership of such companies.” The Department added: “This should not be done however where majority interest in such company is enemy-owned, even though company may be incorporated under laws of U. S.”↩