The Consul General at Shanghai (Davis) to the Secretary of State
[Received September 18—8:52 a.m.]
1756. Executive Yuan of Chinese Govt has placed ban on importation of “American Army surplus goods” effective as of September 13. Ban imposed to prevent purchase of surplus goods by all private firms, in competition with the Govt, which has purchased all remaining Army surplus supplies in China and Western Pacific under overall contract recently signed.4
Information being sought as to whether this ban applies only to new purchases of surplus goods or to import of such goods after September 13. Present information which has not been confirmed indicates possibility ban applies to all privately-owned surplus commodities regardless of when purchased. Full interpretation Executive [Yuan] Order will be sent soonest.5
Repeated Nanking as 998.