893.50 Recovery/6–2848: Telegram

The Ambassador in China (Stuart) to the Secretary of State

1172. Foreign Office reiterated to us today its objection to articles III and IV (new draft) but presented no new arguments. (RefEmbtel 1168, June 27, 6 p.m. and previous.)

[Page 586]

Foreign Office, however, now asks us to substitute for article II, paragraph 2, of new draft the following language: “2. The Government of China will take the measures which it deems appropriate to prevent, on the part of private or public commercial enterprise, business practices or business arrangements affecting international trade which have the effect of interfering with the purposes and policies of this agreement.” Embassy sees no objection to this change.

Sent Department 1172, repeated Shanghai 542.

Stuart