693.9431/5–949: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

1556. Received Peiping’s 732. UP despatch Tokyo mentions Japanese press report Shimbun of plan develop barter trade between Japan and China and says matter being discussed between “certain Japanese banking interests” and “an influential representative of Chinese Communists recently arrived in Japan[”].

[Page 981]

I feel this adds decided weight to reftel. While recognizing probable advantages of such negotiations from viewpoint our Japanese policy, cannot help wonder whether representatives of Chinese Communists should be admitted to Japan while no American representative, and so far as I know, no representative of any Western Power, has been admitted to Communist China. Also should China Communist representative be permitted discuss trade questions when Chinese Communists refuse to recognize official status of all Western representatives. It occurs to me, as condition for continuation of talks, recognition might be demanded of official status of Consular representatives in Communist China, particularly at Mukden.

Sent Department 1556, repeated Nanking 868, OffEmb Canton 420, Taipei 104 for Merchant,69 Tokyo 118, Peiping 142.

  1. Livingston T. Merchant, Counselor of Embassy in China.