Foreign Relations of the United States, 1946, The Far East: China, Volume X

102.81/3–246: Telegram

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

Chungking, March 2, 1946.
[Received March 2—3:12 p.m.]

413. For Commerce. On February 25, Supreme National Defense Council approved temporary regulations governing import and export trade to be effective upon promulgation February 26; (ReEmbtel 377, February 27, 5 p.m.). Substance of these regulations is outlined below but it is not possible to provide now the detailed lists of restricted or prohibited imports, or of prohibited exports, to which the regulations refer. It is understood that such lists are still under preparation by Chinese Government.

Imports are divided into following three categories: (1) free imports; (2) licensed imports; (3) prohibited imports. Free imports are described in the regulations as all commodities not listed in “appended lists A, O and C” or in “appended list of commodities prohibited for importation”. Licensed imports are commodities listed in “appended List A”. Imports of such commodities shall be licensed by the maritime customs, and provision is made for establishment therein of a license department to issue required import licenses in close coordination with Central Bank of China. Unconfirmed press reports indicate that kerosene, sugar, leaf tobacco and motion picture film (presumably undeveloped) are among products for which licenses will be required. According to same source, passenger motor cars reportedly will be subject either to licenses or will be prohibited for import dependent on their value.

Certain commodities are to be prohibited for import, unless the special approval and permission of competent authorities is obtained. The list of such products is not yet published, but unconfirmed newspaper reports indicate that it will include various textile manufactures, including laces, embroidered goods and other decorative textiles made of cotton, flax, hemp, ramie, jute, goat’s wool and silk; woolen carpets and carpeting; knitted and piece goods of silk and silk cloth; cosmetic accessories and cosmetics; toys and games, etc.

With respect to commodities prohibited for importation, it is provided that if such commodities have been ordered before date of publication of these regulations and can be transported into China within 30 days, these may be declared as exceptions at the maritime customs within 10 days after publication of regulations. The fact that list of prohibited imports was not published on date of promulgation of regulations requires clarification of intended date of application of this provision.

All commodities, except those included in the “appended list C” are allowed to be exported freely, but exporters are requested to show maritime customs a certificate of purchase of foreign exchange issued by an appointed bank prior to customs declaration of their shipments. List C referred to above has not yet been published and the extent of control or production to be enforced with respect to commodities included on it has not yet been announced.

The regulations as promulgated on February 26 also provide for establishment under the Supreme Economic Council of a temporary import planning committee which is to have as its chairman the Chairman of the Supreme Economic Council, and is also to include Ministers of Economic Affairs, Finance, Communications, War and Food, and Director General of CNRRA.⁸⁷ Powers of temporary Import Planning Committee are listed as follows:

(1) to determine the import commodities necessary to be imported during rehabilitation period;

(2) to compile and list quantities, prices and dates of arrival of commodities ordered or to be ordered or purchased;

(3) to draw up plans for importation of commodities, taking into account (a) national, financial and economic situation, (b) urgency of need for imports and extent of utilization and (c) the balance of barter and credit concluded with foreign countries;

(4) to prevent various organizations from contending for purchases in foreign countries;

(5) to decide on sources of supply for fully utilizing enemy reparations, UNRRA supplies and/or surplus war materials;

(6) to direct the distribution and marketing of commodities imported or to be imported;

(7) to examine the import needs of various organizations in order to avoid duplication and extravagant expenditure.

More complete details concerning these regulations and lists referred to will be forwarded as promptly as available.

Smyth

87. Chinese National Relief and Rehabilitation Administration.