711.932/7–2848: Telegram

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

1380. ReDeptel 1053, July 20. As stated Embtel 1347, July 22, Senate reservation FCN treaty was not presented to Legislative Yuan prior to adjournment this session. In retrospect Embassy considers bargaining power for proposed exchange of notes Trust Territory, GATT and ITO, especially the first mentioned, will be strengthened considerably if Senate reservation and exchanges notes treated as [Page 762] unit and identified with exchange of ratifications. Embassy senses Government reluctance consider further “limitations”. Dept concurrence this approach desired.

Although Legislative Yuan approval only Senate reservation this session might have been obtained if Foreign Office approached from beginning on this basis, Embassy feels no regrets in view paragraph 1 above and early opening of next session on September 1.

Embassy cannot stress too strongly desirability preparation careful analysis requested Embtels 1292, July 14, and 1346, July 22, to facilitate acceptance proposed exchange of notes. Since next session Legislative Yuan scheduled open within 5 weeks, Embassy suggests analysis be available Nanking by early August if possible.

Please keep Embassy informed re status Italian FCN treaty and exchange of similar notes if latter to be negotiated August or September.