611.9331/12–247: Telegram

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

2325. With reference Deptel 1371, November 10, 6 p.m., and Embdes 1094, November 10, regarding future status of Universal Trading Corporation, Embassy has received second note from Foreign Office [Page 1383] dated November 27 which indicates clearly that Chang Kia-ngau, Governor of Central Bank of China, has discussed matter with Foreign Minister.

Foreign Office states UTC essential for Chinese Government purchases but that procurement of supplies on behalf certain semi-official and private industrial and commercial concerns made at their request about to be completed “in the main”. Last sentence note states that, “From now on it (UTC) will resume its business operations of days prior to Pacific War and will engage itself exclusively in handling purchases and sales for Chinese Government.” Translation note being airmailed.35

Embassy will telegraph any amplification Chinese proposals which it may obtain from Chang and Chen. According note, UTC would continue making purchases for Government-owned enterprises such as NRC subsidiaries.

Embassy attempting obtain information regarding implementation economic reform plan as it may modify operations of Central Trust.

Re last paragraph Deptel, see paragraph 4 Embdes. Embassy believes prospects good that Chinese Government will accept informal proposals for UTC reorganization now being drawn up by Chang and Chen.

Sent Department 2325, December 2, 3 p.m.; repeated Shanghai 916.

  1. Copy transmitted in despatch No. 1135, December 2; not printed.