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

736. Settlements and Diplomatic Quarter. According to Foreign Office, reference to “higher level for final settlement” in item 5 (Department’s 689, April 22) would mean reference to Foreign Office and Embassy concerned. The phrase “prior to enemy taking over” in item 4 is interpreted by Foreign Office as immediately prior to taking over or at time of taking over, and not in sense of at any time prior thereto.

Sent Department 736, repeated Shanghai 324.