125.633/10–1749: Telegram
The Consul General at Peiping (Clubb) to the Secretary of State
[Received October 17—5 a. m.]
1759. Re Contel 1757, October 17. In final analysis it might be found advisable exert economic pressure against Commies. Note Sino-American and Sino-Japanese trade has to date hardly developed to stage where its manipulation would constitute strong leverage: Threat to withhold what is still ungranted in major scale is less effective [Page 984] than actual withholding of something already in being. Suggest however that if in immediate future there are developments re Sino-Jap barter trade for instance, conclusion deal might be held up pending settlement Mukden and Smith–Bender10 cases pressure. The more that is involved of course the more pressure would be felt. This might well be worked by implication into any conversation at Foreign Office. Feel strongly, particularly in view relatively short period letter sent Chou, that statement should be held up until new avenues explored.