102.81/3–2046: Telegram

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

525. Conversation with Dr. Wang Chung-hui, Secretary General, Supreme National Defense Council, on March 19 confirmed action with respect to “doing business” requirement of revised company law as reported in Embtel 517, March 19, 10 a.m. Dr. Wang stated that Council’s decision would be final and no precedent exists by which Legislative Yuan could return matter for reconsideration a second time. He said, also, that Council’s decision has been forwarded to Legislative Yuan and that necessary action will be taken by that [Page 1307] body on March 23. The law should be promulgated a few days thereafter and will be enforced from the date of promulgation.

We are taking up with Ministry Economic Affairs matter of deadline for registration of foreign firms20 under revised law when promulgated. (Please inform Commerce.)

Dr. Wang requested particularly that no publicity concerning Council’s action be given in US prior to public announcement by Chinese Govt. (Sent to Washington 525, repeated to Shanghai 207, March 20, 4 p.m.). He stated that views were evenly divided when matter came up for hearing on March 18 and that Chiang Mon-lin, Secretary General of Executive Yuan, was leader of opposition supported by certain Chinese industrialists.

  1. In telegram No. 631, April 6, the Counselor of Embassy in China reported a notice from the Foreign Office that the deadline for registration had been postponed from the end of March to the end of June (893.5034 Registration/4–646).