693.9431/5–3149: Telegram

The Acting Secretary of State to the Consul General at Peiping (Clubb)

343. 1. SCAP has under consideration following transaction with firm obviously purchasing for consignees in Chinese Commie territory:

China Mutual Trading Company offers through Tokyo representative barter 15,000 metric tons soybeans at US $126.50 per ton for about 3,000 metric tons copper wire of following gauges: 4 mm, 400 tons; 3.7 mm, 400 tons; 2.9 mm, 400 tons; 7 mm, 1,000 tons; balance consisting of rubber insulated wire and flexible electric cord. Total value of deal about US $1,900,000 shipping destination of wire Yingkow, Manchuria. No information re consignee in China or end-use.

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2. Fact that destination is Yingkow leads presumption wire destined for use Manchuria.

3. You should endeavor inform Commie officials above proposal has been made and that you requested obtain information re consignee, actual end-use and place of end-use. You may in your discretion indicate that in view apparent destination information would most appropriately come from US Consul General [at] Mukden who is in best position obtain and assess. You may also indicate that this information is necessary to consideration of the proposal.

4. For your information only, language of position in paragraph 3 drafted so as to make end-use information absolute prerequisite to consideration of trade proposal, but not necessarily to require that such information come from Consul General Mukden. Decision re importance to be attached to receipt of information from Consul General Mukden will depend upon variety of factors, including character Commie reaction, current status negotiations re Ward’s withdrawal, reliability of information provided by alternative sources, etc.

5. For your information, Tientsin has been requested make similar check on other orders copper wire placed by A. C. Henning and Co. and Bryner and Co. Tientsin.