893.5034 Registration/12–3145: Telegram
The Chargé in China (Robertson) to the Secretary of State
[Received 10:47 a.m.]
2248. At press conference December 26 Govt. spokesman P. H. Chang stated he had been told by Dr. Sun Fo, President [of] Legislative Yuan, that no modification of company law was contemplated by Legislative Yuan. Dr. Sun’s public statement is reliably understood to have been in response to questions from correspondents after publication of a statement attributed to the China–America Council that the company law would probably be revised, in effect, in accordance with the Council’s recommendations. Under the headline “Chinese Company Law to be revised at CAC’s request,” this appeared in the National Herald December 26 as Central–UP despatch datelined San Francisco, December 24. For its text see Embtel 2228, December 27.72
Whether or not the Council was correctly reported in this despatch, the publicity in China could scarcely have been more poorly timed or more inappropriate. It has served only to provoke Dr. Sun’s public stand, and therefore to seriously handicap the Embassy in negotiations which are now in their most delicate stage. Please so inform the Council.
The Embassy is continuing efforts at modification of law (please inform Commerce) in accordance with Dept.’s instructions.
- Not printed.↩