693.9431/3–347
The Acting Secretary of State to the Consulate General at Shanghai72
The Acting Secretary of State acknowledges the receipt of the Consulate General’s despatch no. 893 of March 3, 194773 reporting the results of recent discussions between United States officials and members of the SCAP Food Mission to Shanghai concerning Sino-Japanese trade, together with the request for an expression of Departmental policy with regard to the responsibility of United States representatives in China in connection with the development and expansion of Sino-Japanese trade.
The Department concurs in the opinion expressed by the Officer in Charge to the effect that an increase in the present trade between China and Japan is economically desirable. The suggestion that a Sino-Japanese trade conference should be held for the purpose of promoting the expansion and balanced growth of Sino-Japanese trade will be brought to the attention of the Supreme Commander for the Allied Powers for his information. Encouragement of Sino-Japanese trade by United States representatives in China through participation in exploratory conferences and discussions and by presentation of advisory opinions as to methods of stimulating Sino-Japanese trade when deemed proper, would be considered desirable by the Department and within the scope of responsibility delegated to United States representatives in China. The Supreme Commander for the Allied Powers should be informed of all developments in China pertaining to [Page 210] Sino-Japanese trade, and in the event that the Supreme Commander wishes to delegate certain responsibilities in connection with the furtherance of such trade to United States representatives in China, affirmative action taken by such representatives in this respect would be coordinated, and carried out in close conjunction with, the Supreme Commander for the Allied Powers.