102.81/3–1946: Telegram

The Counselor of Embassy in China ( Smyth ) to the Secretary of State

517. Please inform Commerce. Yesterday in commercial treaty negotiations we were confidentially informed by Dr. Wang Hua-cheng, Chief, Treaty Dept, MinFonAff, that Supreme National Defense Council had earlier same day, March 18, reaffirmed its previous recommendation concerning deletion of “doing business” requirement of articles 7 and 292 of revised company law. Dr. Wang stated this decision was now binding on Legislative Yuan and that revised law will be promulgated with objectionable requirement deleted (ReDeptel unnumbered, March 1419 and Embtel 347, February 22, 9 a.m.).

As promptly as possible we shall report date of promulgation of revised law together with information concerning new deadline for registration of foreign firms. It is requested that there be no public disclosure of this information pending announcement of action taken by Chinese Govt.

In further response to Deptel of March 14, 9 p.m., we have confidentially been informed of an order already signed by Ministry Economic Affairs extending deadline for registration to June 30, 1946, but no public announcement to this effect has been made (sent to Washington 517; repeated to Shanghai 200) and possible effect of yesterday’s action on this order is not yet known.

  1. No. 469, supra.