893.24 FLC/9–1648: Telegram

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

1709. For Luboshez from Clark. After discussion with Tung Ling, Foreign Office, it appears question of cut-off now [date] poses [no]32 serious obstacle. Chinese prepared agree October 31 (WAE 8905033). Principal obstacle to agreement appears to be General Kiang’s determination to select surplus property. In Dr. Tung’s mind, this seems involved with a definition of “scrap”. To both Dr. Tung and to me it would seem there is ground here for compromise and that some of Kiang’s fear that he is having scrap dumped on him as surplus property might be removed if a definition of scrap could be agreed upon which would be sufficiently broad to cover surplus, the value of which is, in fact, only as scrap. Suggest you discuss this matter with General Kiang as Foreign Office feels no further formal discussion Nanking would prove profitable until agreement this vital problem has been reached between FLC and Bosey.

Sent Shanghai 815, repeated Department. [Clark.]

Stuart
  1. Bracketed changes made on basis of Embassy file copy of telegram.
  2. Dated September 10, not printed.