711.9327/10–946: Telegram

The Acting Secretary of State to the Ambassador in China (Stuart)

867. Dept appreciates excellent work Embassy and Powell in negotiating under difficult conditions (Your 1622 Oct 9). In view Chinese position re Mukden we reluctantly agree eliminate it from annex now provided agreement can be concluded without delay and Dairen included in Chinese letter as noted below.

Dept prefers latter part of fifth sentence new paragraph Chinese letter your 1622 Oct 9 (which presumably replaces last two paras Chinese letter your 1471 Sep 12) be revised to read: “…41 and Chinese carriers will also then be authorized on additional route to US territory on basis of reciprocity”. Next sentence revised to read: “In this connection it is specifically understood and agreed that as [Page 1251] soon as US carriers are authorized to serve the additional traffic points of Mukden and Dairen, Chinese carriers will be authorized to serve additional point of New York on following route: China over an Atlantic route via intermediate points in etc. etc. to New York”. Note that “and beyond” should be omitted after New York.

Dept assumes Mukden omitted in first paragraph Section A Annex as well as in route 1, and hopes route 1 can be revised per Deptel 840 Oct 7.

Also assume New York omitted from first paragraph Section B Annex and Chinese route 3 eliminated.

Confirm foregoing as well as points raised Deptel 754 Sept 14.

Sent to Nanking; repeated Shanghai as Depts 1823.

  1. Omission indicated in the original.