711.9327/11–2046: Telegram

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

1916. After several meetings the text of a Sino-American transport agreement together with covering letter was agreed by the Chinese and American negotiators on basis set forth below. Embassy has been informed that Executive Yuan has approved these documents which have now been resubmitted to Generalissimo and that as soon as his approval is forthcoming the signing can take place.

The documents are in following form:

Body of agreement contains the 13 articles about which you have been advised.
Section A of annex does not include Mukden as traffic point. General Marshall felt that in view of political situation we should accede to Chinese insistence on the elimination of this point. Otherwise section B remains unchanged.
Section B of annex does not include Seattle as traffic point. Chinese changed their position on surrendering route number three because their top officials felt the agreement should show on its face that each government was granted three routes on basis of reciprocity. Section B [A] now contains the original three routes but with Seattle eliminated.
Section C of annex contains the Bermuda Fifth Freedom traffic limitations we requested without change.
Section D of annex contains verbatim the Bermuda agreement annex section II language on rates, except for inserting “China” in place of “United Kingdom”.
The letters to be exchanged are set forth in full as follows:

[“]Excellency, I have the honor to refer to the air transport agreement signed today between the Government of the United States of America and the Government of the Republic of China, and to state that, in connection with this agreement, it is the understanding of my Government that the following points have been collaterally agreed to:

Until such time as the airport facilities at Tientsin are enlarged and improved to the extent necessary to accommodate aircraft flying on the international route serving the traffic point of Tientsin as designated in the aforesaid agreement, aircraft serving this route will be permitted by the Government of China to land for international traffic purposes at Peiping.
There will be no objection to United States carriers designated to serve routes two and three described in paragraph ‘A’ of the route annex, serving Hong Kong instead of Canton at the option of the United States Government; provided, however, no shuttle service [Page 1257] will be operated by the designated United States carriers between Hong Kong and any one of the points in Chinese territory mentioned in the annex attached to the agreement. Furthermore, the United States carrier designated to serve route number 2 described in paragraph ‘A’ of the route annex, will have the right to connect with its mid-Pacific service at Canton, in event the option to serve Canton instead of Hong Kong is exercised by the United States Government. Likewise, the Chinese carriers designated to serve routes numbered one and two, described in paragraph ‘B’ of the annex will have the right to connect at San Francisco.
The Government of China is fully aware of the desire of the Government of the United States that United States carriers be granted the right to serve additional international traffic points in China, including Manchuria. However, the Government of China deems it impracticable, in view of the present unsettled situation in certain areas of China and the present lack of adequate airport, customs and immigration facilities, to grant such additional international traffic points at this time. In view of this situation the question of granting rights of service at additional international traffic points will be reopened at such time as it becomes feasible and it is understood that the Government of China gives special assurances that as soon as conditions readily permit, rights of service at additional international traffic points will be granted to the United States. In this connection it is specifically understood and agreed that as soon as United States carriers are authorized to serve the additional traffic points of Mukden and Dairen, Chinese carriers will be authorized to serve the additional traffic point of Seattle on route number one, described in section B of the annex.
United States carriers will be authorized to serve additional traffic points in Chinese territory as soon as the carriers of any third country are so authorized, and on a basis of reciprocity Chinese carriers will also then be authorized to serve additional points in United States territory.
The term ‘and beyond’ as used in the annex to the agreement means that the route so described may be extended beyond the territorial limits of the contracting party to one or more other countries. This term shall not be interpreted to commit either contracting party to the granting of additional traffic points in their respective territories.

I shall be much obliged if Your Excellency will confirm the foregoing.

I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration”.

“Excellency, I have the honor to acknowledge the receipt of your letter of November 1946 which reads as follows: (here insert text of letter).

I take pleasure in stating that the contents of your letter, as quoted above, are acceptable to the Government of the Republic of China.

I avail myself of the occasion to renew to you, Sir, the assurance of my highest consideration”.