693.9431/6–449: Telegram

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

370. Your reference closure Mukden office and alternative provision info ConGen Peiping may be interpreted by Commies as indicating such alternative equally acceptable (Peiping’s 937 June 4). Although Dept did not envisage position that receipt info from ConGen Mukden absolute prerequisite, it wished convey suggestion that, unless info received this source, adequate basis might not exist for SCAP’s consideration proposed transaction. (Deptel 343 May 31). Dept entertains no optimism that this tactic would now reverse Commie treatment Ward, but believes that importance ConGens role in reporting info necessary facilitate trade should be demonstrated to Commies wherever possible without appearing use trade as open leverage political concessions.

Dept not suggesting you take obvious initiative correct possible misconstruction your note Chang (ConGen’s reftel) since this might appear indicate undue interest Sino-Jap trade or be construed political [Page 990] maneuver designed retain Ward [in] Mukden. However, if appropriate opportunity presented suggest you state following to Chang in sense afterthought your note:

“While you willing transmit SCAP any end-use info submitted, you doubt that it would provide nearly as much basis for favorable action as would provision info directly by ConGen in area intended utilization Jap exports; that, in either event, assessment reliability info would depend, in part, on its being submitted by ultimate consignee and substantiated by Commie officials; that, if latter interested in expediting proposed China Mutual transaction they should themselves present info directly to appropriate US ConGens.”81

  1. In telegram No. 1115, July 2, noon, the Consul General at Peiping reported he had taken “occasion [to] present him (Chang) afterthought set forth second paragraph Department reference telegram (No. 370) incorporating it in written memorandum handed him.” (693.9431/7–249)