Foreign Relations of the United States, 1950, East Asia and the Pacific, Volume VI

493.119/12–2250: Telegram

The Secretary of State to the Consulate General at Hong Kong

confidential
priority

Washington, December 22, 1950—8 p. m.

1797. Dec 21 Dept handed reps Brit Emb memo¹ re effect on Hong Kong US econ controls over US econ relations Commie China. Dec 22 identical memo¹ handed Portuguese. Fol is gist memo:

1. US Govt has instituted export, freezing, and shipping controls over econ relations Commie China.

2. Recognized that existence controls will inconvenience Hong Kong and Macao.

3. US hopes in due course it can act favorably and without undue delay upon license applications for export to Hong Kong and Macao of commodities necessary for local economy and normal transshipment to destinations other than Commie China where this can be done without subverting intent US controls for Commie China.

4. Due absence controls at Hong Kong and Macao parallel to US controls, US licensing officers must proceed very cautiously for time being in acting on export applications for Hong Kong and Macao.

5. In order facilitate operations licensing officer UK and Port invited provide suggested standard for determining volume of imports from US other than Positive List items, which could be licensed Hong Kong and Macao without risk transshipment Commie China.

6. UK and Port also requested consider procedures whereby US auths cld be assured—by official guarantees, or otherwise—that exports wld not be transshipped or US controls otherwise subverted.

7. Anticipated for present all Positive List items for Hong Kong and Macao will be licensed only after case by case consideration.

Currently in force are very restrictive interim licensing criteria for approving exports Hong Kong and Macao but it is hoped after consultations they may be modified to meet more fully Hong Kong and Macao interests to some extent without subverting purposes US controls.

Acheson

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