693.9431/9–849: Telegram

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

646. Your 1380 Aug. 18 and 1499 Sept 8 relayed to SCAP. Suggest you advise San Yang conduct further negots this matter direct through its Tokyo rep, being careful point out your inability advise re possibility successful outcome and emphasize fact ultimate decision must be made by Jap suppliers and SCAP. It wld be inappropriate for SCAP to designate specific firms with which San Yang shld deal and company’s rep Tokyo shld be in position make own decision. Any fon businessman in Japan may approach any firm without special permission.

While you may continue offer services as means communication for SCAP and company to clarify particular points you shld require [Page 996] company use normal public facilities in communicating with its Tokyo agent.