846G.79693/1–1548: Telegram

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

71. Pan Am issued instructions 15th to effect that company will in no way voluntarily give up right carry traffic Hong Kong-Shanghai, urtel 99, Jan 15.

While Dept hopes above will correct undesirable effect Pan Am action reported urtel, point should be made clearly to Chinese that regardless of actions of carrier US Govt alone is one to decide whether fifth freedom rights will be exercised at least until outcome consultation with Chinese becomes known.

Detailed comment urtel follows.

Sent Nanking as 71; rptd Shanghai as 88.