693.9431/7–949: Telegram

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

1148.ReDeptel unnumbered July 6, 9 a. m., Contel 1130, July 7.86 Am informing prospective traders travel disapproved.

[Page 992]

Chin Ting-chih yesterday expressed opinion refusal grant permits would constitute setback project for restoration trade, noting that Minister Industry Commerce Yao had been unoptimistic prospects in first instance and this would constitute confirmation his original belief American authorities would not permit such trade.

Note for purposes record travelers did not constitute “trade mission sponsored by Chinese Communist regime” in technical sense but were instead several non-official individuals representing private business concerns interested in trading for purposes profit. In existing circumstances trade would, of course, have to have approval Communist authorities and trade products contemplated for sale Japan were in fact to be supplied by Communists’ official organs.

Chin commented that North China authorities would conclude that altho SCAP prepared give approval in principle restoration trade it was nevertheless unprepared see trade restored in fact. SCAP trial trade deals with North China if successful would, of course, in part counteract such Communist deductions but invite attention Dept desirability restoration China–Japan trade acting in manner incidentally to strengthen position Consulates this area.

  1. Neither printed.