893.51/5–1246: Telegram
The Secretary of State to the Consul General at Shanghai (Davis)
Washington, May 21, 1946—3
p.m.
888. As Dept understands proposal in Urtel 827, May 12, additional credit if granted should be on condition that no exchange be allocated for purchase non-American cotton until a further $7 million has been [Page 987] allocated for American cotton thus assuring total American sales of 47 million. Dept believes proposal inappropriate and in conflict with principles American trade program. However, sentiment in Eximbank seems adverse to Chinese request but no action taken.
Byrnes