611.9331/3–1049: Telegram
The Consul General at Tientsin (Smyth) to the Secretary of State
[Received March 13—2:49 a. m.]
132. Indications are Communists anxious to revive foreign trade on which livelihood large part population Tientsin depends. We believe our authority to certify invoices (our telegram 123, February 24) may be useful lever in dealing with local authorities. To date authorities [Page 911] continue non-recognition consular status and we in no position to press on any question.
Since Communist capture Tientsin, no invoices have been presented certification but with resumption of shipping we can expect requests for invoice services. We propose to certify invoices for exports from Tientsin as revival of normal trade desirable but we feel that threat not to certify invoices unless we granted normal facilities may prove an effective card.
Communist authorities reported to intend by-passing Tientsin Consulate (and perhaps Peiping and Mukden) by shipping to Hong Kong or Shanghai and invoicing there. In order for invoice certification to be effective weapon, we recommend Consulates in non-Communist parts China and Hong Kong be instructed not to certify invoices covering goods originating Communist China. Furthermore, Treasury Department should be requested to fix penalty bond, for merchandise from this area not covered by invoice, in amounts sufficient to deter entry without invoice.
Tientsin American Chamber Commerce strongly endorses above recommendation. If Department concurs and will so instruct concerned offices, please advise so that we may give informal publicity locally.
To assist Consulates in Hong Kong and non-Communist parts China in spotting products from this area, the principal exports are bristles, woolen rugs and carpets, furs, raw wool, straw braids, walnut meats, egg products.