Office of the Historian

611.9331/8–1449: Telegram

The Consul at Shanghai (McConaughy) to the Secretary of State

Shanghai, August 14, 1949—8 a. m.
[Received August 14—12:35 a. m.]

3227. Received Tientsin’s 367, August 7 [2], sent Department 580.24 From American Commercial Attaché Hinke.

If not already in effect, suggest [Department of] Commerce consider advisability immediate establishment [and] use secret unofficial unpublished “proclaimed list blocked nationals[”] as phase export controls on shipment to Communist China, particularly applicable Soviet firms and cloaks working primarily in interest Chinese Communists. Have felt lack such controls applicable North China has been [Page 964] prejudicial national interests USA since VJ Day. Believe such list might also be effectively used by US Customs in screening imports from Communist China for undervaluation, sales below production costs, efforts accumulate capital in USA for Chinese Communists’ benefit, and generally keeping tabs on activities Chinese Communists and Soviet cloaks, whether working under own names or however related to business with USA.

ConGen Shanghai on lookout for similar activities here, temporarily suppressed due blockade.

To be most effective, such list should be placed in hands OIT25 screening officers and customs officers principal ports entry.

Sent Department 3227. Department pass Tientsin. [Hinke.]

McConaughy
  1. Not printed; it reported the major part of North China’s foreign trade was being handled through firms having Communist or pro-Communist management or connections (611.9331/8–249).↩
  2. Office of International Trade in the Department of Commerce.↩