811.79693/9–1346: Telegram
The Ambassador in China ( Stuart ) to the Secretary of State
[Received September 14—5:20 p.m.]
1477. As ConGen may be aware, situation described in its 958,60 September 7 and 966,61 September 9 is a recurring one. Embassy [Page 759] concurs that section 401 of Nationality Act 1940 is not applicable and since no question of involuntary servitude arises, it considers the problem on the one hand primarily for decision by individual pilots on basis of their contractual rights and on the other for Pan American as part owner of CNAC. For your confidential information, Embassy does not wish to be placed in a position by Mr. Bond of advising an official of a Chinese semi-governmental owned corporation not to engage in any given activity but it has made occasion to bring the undesirability of the employment of American pilots for such purposes by CNAC informally to the attention of the Acting Foreign Minister62 in suchwise that he undertook to discuss situation with parties concerned forthwith. No mention was made to Dr. Kan of initiative taken by Bond.
Sent Shanghai 583; repeated to Department 1477.