611.9331/4–149: Circular telegram
The Secretary of State to Certain Diplomatic and Consular Officers in China 31a
Agreed here that refusal certify invoices on grounds ConGen Tientsin unable use code communications not feasible as hidden leverage and would be recognized readily as restrictive economic measure. (Deptel 12132 to Peiping for Tientsin as 55 March 12). Dept believes attempt regularize Consular functions and obtain Commie recognition official consular status by threat or application economic pressure through refusal invoice certification or other direct and open restrictions trade tactically unwise at this time. Practical obstacles application such measures probably would seriously impair their effectiveness, benefit British and/or other third nationals at expense US business, and elicit Commie retaliation leading economic warfare seriously prejudicial establishment consular functions and trade relations.
Efforts obtain Commie recognition official consular status inappropriate since this would have overtone de jure relations in which we unable reciprocate. However, consular performance normal functions, including maintenance confidential radio, separate matter for which there is ample historical precedent without prejudice de jure relations. Commie accession such functions may be induced gradually by realization their contribution mutually profitable economic intercourse, and consular position should be strengthened by usage such functions where possible. Dept agrees direct approach Commies Peiping should be taken in discretion ConGen along lines discussed first alternative Peiping’s 415 March 15. This could be supplemented by ConGen Tientsin as proposed Embtel 669 March 3033 sent Peiping 103, as follows:
“You may suggest in your opinion businessmen in USA possibly interested in revival trade Manchuria [and] North China with degree [Page 927] this interest depending on treatment accorded them and opportunities afforded US business on direct two-way basis, with reestablishment branch offices, facilities for travel, communications and exchange necessary conditions.
You may also say transmission Department Commerce for information US business any specific trade opportunities genuine commercial nature one of normal consular functions you seek to continue to perform, if possible.
You should disclaim knowledge present US Govt economic policy or attitudes toward trading Communist areas but indicate usual treatment US Consular Officers prerequisite resumption normal trading relations with USA, which unless accorded promptly may complicate solution.”
Dept suggests rephrasing last sentence above to read “…34 usual treatment US and other foreign consular officers important aspect resumption normal foreign trading relations”. ConGen Peiping authorized seek coordinated British and French approach. Dept will make similar efforts here and Nanking should undertake parallel discussions, but ConGen Peiping should proceed in his discretion if cooperation foreign colleagues not forthcoming.
ConGens Peiping and Tientsin should certify invoices on request. This supercedes instructions Deptel 121 to Peiping for Tientsin as 55 March 12. Dept endeavoring ascertain [from] Treasury if Customs will require severe penalty bond for entry goods shipped directly from Tientsin without consular invoice provided ConGen Tientsin was willing certify in accordance regulations. Tientsin should identify large rug shipment SS China Victory on which invoice certification was not made (Tientsin’s 178 and 179 March 2835).
Every effort should be made consistent regulations to inconvenience transshipments via Shanghai and Hong Kong as stimulus direct trade in interest strengthening consular functions Tientsin. ConGens Shanghai and Hong Kong should be strict as possible re invoice certification procedures on goods appearing originate Tientsin. To assist in spotting such goods, ConGen Tientsin lists principal exports as bristles, woolen rugs and carpets, furs, raw wool, straw braids, walnut meats and egg products. Dept exploring with Treasury what delaying action, if any, by Customs re Tientsin transshipped cargoes might be taken in conformance regulations (Shanghai’s 1010 Mar 28).