393.1141/1
The Secretary of State to the Minister in China (Johnson)
Sir: The Department refers to the Legation’s despatch No. 41 of February 25, 1930,80 in which the Legation asked for a ruling from the Department regarding the extent of American interest necessary in order to warrant diplomatic intervention in the case of American property sold to Chinese on an installment payment plan.
The Department did not at once reply to the despatch under reference, since it was felt that the Department’s instruction No. 939 of August 1, 1928, gave sufficient information regarding the Department’s views for the guidance of the Legation in dealing with transactions of the sort indicated.
The Department having again given its consideration to the point raised by the Legation is of the opinion that American consular officers would, in general, be warranted in extending assistance to an American seller at any time during the period of installment payments, that is, until the title in the article sold passes to the purchaser. The Department believes that it would be unwise at this time to attempt to add to this general statement and to the discussion of the subject found in the Department’s instruction No. 939 of August 1, 1928, anything in the nature of precise instructions for the guidance of consular officers.
Very truly yours,