611.9331/10–247: Telegram

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

2016. When Embassy representatives October 2 informed Governor Central Bank substance your telegram 1101, September 3, 4 p.m., he replied that he and K. P. Chen30 had proposed that UTC activities should consist of following in future: (1) liquidation paper commitments; (2) purchases on Chinese Government account from private commercial channels in United States; (3) promotion of Chinese exports without, however, any participation in their commercial disposal.

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In Embassy’s opinion this proposal constitutes basis for discussions here and in United States. For Department’s information, K. P. Chen stated to Embassy official in Shanghai last week-end that CSC31 staff being drastically curtailed.

Sent Department 2016; repeated Shanghai 817.

  1. President of the Universal Trading Corporation.
  2. Chinese Supply Commission, official Chinese agency in Washington handling procurement of lend-lease shipments. It was dissolved on August 1, 1947, except for completion of “old business”, and its functions were transferred to the Universal Trading Corporation.