811.79693/1–2048: Telegram

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

130. Reference Deptel sent Shanghai 81, January 16, repeated to Embassy as 68, January 16. Deptel 1535, December 19, 1947.17 Source close to CNAC informed Civil Air Attaché, Minister of Communications Yu Ta-wei incensed at manner in which CNAC’s requests (1) operate to Tokyo, thence return to Shanghai, (2) operate shuttle service Tokyo, Seoul, Okinawa, Shanghai, have been handled by US authorities. Source also stated generally believed in CNAC that precipitate action taken Chinese Govt vis-à-vis PanAm on January 14 (reference Shanghai’s telegram 102, January 15, repeated Nanking as 78) reflected Minister Yu’s present feelings. Present atmosphere appears most unfavorable and time not propitious raise questions re Northwest shuttle service. As mentioned Embtel [Shanghai’s] 1812 [to Embassy,] November 25,18 re PanAm shuttle service, should matter of an American carrier’s desires initiate services Tokyo, Seoul, Shanghai, Okinawa be brought formally to attention Chinese Govt it can be expected that Chinese Govt will counter with request it be permitted operate similar services.

Inability CNAC obtain permission operate services mentioned above appears to have created feeling of ill will aviationwise within minister [Ministry?] of Communications vis-à-vis US authorities. If Chinese approached now re Northwest desires, and services Northwest proposes operate outside terms of bilateral, unfavorable reaction may be expected. Chinese will likely view services proposed by Northwest as of regional character unless aircraft engaged Tokyo, Seoul, Okinawa, Shanghai operation connect with trunkline services and engage primarily movement passengers for purpose of connection with trunkline planes. It would seem desirable, therefore, before approaching Chinese for Dept determine whether services come within provisions bilateral.

Sent Washington 130, repeated Shanghai 54.