Foreign Relations of the United States, 1949, The Far East: China, Volume IX

693.419/9–949: Telegram

The Chargé in the United Kingdom (Holmes) to the Secretary of State

London, September 9, 1949—1 p. m.
[Received September 9—8:55 a. m.]

3632. Embassy has received FonOff note re Embassy’s aide-mémoire August 3 (Embtel 3061, August 4). While agreeing US objectives insuring western trade does not increase military strength Chinese Communists and influence orientation Chinese Communist regime, UK does not agree that “means proposed by USG are likely to lead to the desired result”. Note emphasized concern UKG pointing out specific sensitivity re Hong Kong and Southeast Asia, supports UK desire control export petroleum products on grounds reserve stocks petroleum essential for Chinese Communist expansion beyond Chinese borders. Occasion taken in note support their continued maintenance commercial and financial relationships on grounds this will give best opportunity exercising influence on Chinese Communist regime. Note has Minister’s approval.

Text being airmailed.⁶³ Request instructions if further approach by Embassy desired.

Holmes

63. Despatch No. 1441, September 9, not printed.