446G.119/1–1751: Circular telegram

The Secretary of State to Certain Diplomatic and Consular Offices 1


393. From Commerce.2 As an interim measure the following policies, procedures and licensing criteria are established for processing of export license applications for Hong Kong and Macao including shipments [Page 1878] from foreign sources in-transit through the U.S., and including both positive list and non-positive list items.

A. The Office of International Trade may approve cases where there is evidence indicating that the shipment will not be transshipped to any sub-group A destinations, and where the following criteria are met: (1) The item to be shipped is included on a list of permissible items of little or no strategic significance, approved by ACEP, except that OIT may deny or reduce particular shipments if the quantities appear excessive; or

(2) There is reasonable indication, such as requirements data and/or other official evidence (i.e., official representation by U.K. or Hong Kong authorities), that the shipment does not involve excessive quantities, stockpiling, industrial expansion, or other questionable security risks; and

(a) Is required to meet the minimum essential short-term needs of legitimate users for direct consumption in Hong Kong or Macao; or

(b) Is required for use in the processing in Hong Kong or Macao of goods for consumption in Hong Kong and Macao or for export to approved destinations; or

(c) Is for transshipment from Hong Kong or Macao to an approved ultimate destination.

B. In all other cases there shall be a presumption for denial, and OIT is authorized to take such action.

As soon as possible, list of permissible items, which will be subject to change, will be transmitted. [Commerce.]

  1. Sent to London, Paris (Excon), Hong Kong, and Singapore.
  2. Drafted by E. P. Walinsky of the Security Operations Division, Department of Commerce; cleared by Ashley G. Hope of the Office of Chinese Affairs.