The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received February 26—3:40 a. m.]
[Cantel] 81. Director American section Foreign Office, who seems familiar whole problem Sino-Soviet trade negotiations, insists that only very preliminary discussions have taken place and that nothing can be consummated without Foreign Office approval (Nanking’s 97, February 23, repeated Department 453, Tihwa 20, Moscow 17). In answer to his inquiries as to our interest, I said we wanted to protect rights under our treaty and we hoped they would not suffer, among other things, through formation of Sino-Soviet companies which would in reality be Soviet, as has been the air line. He again promised to keep me informed of developments, my [Cantel] 50, February 16, repeated Nanking 50.
Sent Department, repeated Nanking 78, Tihwa 1, Moscow 1.