893.20/433: Telegram

The Consul General at Shanghai (Cunningham) to the Secretary of State

83. Referring to my 76, April 22, 11 a.m., I have confirmed through conversation that H. H. Kung is now in control of aviation developments and purchases. I believe he is distinctly pro-Italian although he assures me there is no intention to replace American [Page 301] instructors at Hangchow nor to establish another school. Aviation [American?] Trade Commissioner, Howard, informs me that both American factory proposals are at present deadlocked and that negotiations are being conducted with Fiat and Caproni. Howard views with apprehension the future of American aviation in China and believes that an early decision may be made adversely affecting Americans. Howard and I both believe that occasion should be taken to impress upon Minister Soong while in Washington the importance of outlining an aviation policy to Kung which will give Americans an equal opportunity with Italian and British.20

Will the Department please communicate substance to Commerce.

Repeated to the Legation.

Cunningham
  1. By telegram No. 63, May 20, 2 p.m., the Department replied: “Department has discussed with Minister Soong the question of avoiding any discrimination in supplying aviation needs of China.”