Foreign Relations of the United States, 1947, The Far East: China, Volume VII

811.503119/6–3047: Telegram

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

Washington , June 30, 1947—5 p.m.

801. New joint memo submitted by Far East-America Council and National Foreign Trade Council⁹ (Deptel 178 Feb 13 and Urdes 516 Feb 24¹⁰) reopens question of Chinese Govt participation trade and industry. If Chinese have not replied your aide-mémoire Feb 19,⁷ suggest Embassy at its discretion press for reply on basis para 1 Shanghai Contel 1517 to Dept June 21⁷ citing press reports of new economic plan restricting govt operations in industry. Pls report for early reply to Councils, including info on progress in transferring govt operated enterprises to private interests (Urtel 789 Apr 11¹¹).

Marshall

9. Dated June 17; not printed.
10. Latter not printed.
7. Not printed.
7. Not printed.
11. In this telegram (893.60/4–1147), the Embassy cited a Central News Agency report that 70% of the assets of China Textile Industries, Inc., 50% of the shares of the China Silk Co. and the China Salt Co., and all the assets of the China Marine Products Co., the China Tobacco Co. and of various paper and flour mills, power plants, and factories manufacturing automobile accessories, edible oils, dyes, paints, drugs, and textile machinery would be sold to private interests. This development was in line with “Measures Concerning the Balancing of the National Budget” as reported in section 1 (d) of Embassy’s telegram No. 299, February 17, 1947, p. 1071.