The Secretary of State to the Ambassador in China (Stuart)
Washington, March 24, 1948—3 p.m.
439. Reurtel 494 and 505 Mar 19.
- Dept reiterates previous position Hong Kong–Shanghai Fifth Freedom rights. We continue believe final results consultation this question likely have greater significance in terms worldwide US Fifth Freedom position than in terms specific routes in China. Concur Embs position last two sentences para 3 urtel 494. Political status Kowloon not properly subject for discussion connection Air Transport Agreement and Dept continues to hold that matter is one for discussion between Brit and Chinese.
- Dept concurs (urtel 505) Chinese route requests would amount to renegotiation agreement. Dept will not at this time agree to any changes in Chinese routes involving additional US trafile points. Dept still willing amend Chinese routes re Para 5 Deptel 234 Feb 12.
- Concur Embs position re Chinese request add new subpara b (3) to Annex.
- Agree re desirability raising question re gasoline taxes.
Sent Nanking; rptd Shanghai as 516.