883.801/8–1949: Telegram

The Chargé in China (Clark) to the Secretary of State

Cantel 991. Orally informed by FonOff Nationalist Government agreeable in principle to repatriation vessel and to inclusion some cargo (telCan 550, August 11, repeated Shanghai 1583; Nanking 945). As I have previously reported, Nationalist Government is determined obtain fullest possible advantage from blockade. It has nevertheless agreed to importation certain items to be purchased and used by foreigners, but insists on prior approval cargo carried [Page 1306] and will desire board vessel examine manifest before its entry Shanghai. No cargo will be permitted be exported from Shanghai on outward voyage.

In answer my inquiry as to principles which would guide approval or disapproval of cargo, was informed that while Government would not permit importation articles direct benefit Communists, it would permit limited importation sufficient make visit vessel feasible even though such importation were of indirect benefit to Communists. In other words, importation must be kept to minimum and to those things essential to obtaining Communist approval entry vessel. If Communists’ demands too great, Nationalist Government will refuse safe conduct.

Sent Department, repeated Nanking 643, Shanghai 507.

Clark