493.119/12–3150: Telegram
The Consul General at Hong Kong (McConaughy) to the Secretary of State
priority
1695. From Hunt.1 ReDeptel 1797, December 22. ConGen discreetly conveyed pertinent information to Colonial Secretary Hong Kong Government December 24 as believed wise he be informed soonest that US hoped license items needed local economy and normal transshipment other than Communist China under certain conditions. Colonial Secretary appeared relieved US not contemplating cutting off Colony from basic needs normally obtained US. He expressed appreciation reasons US denying exports Communist China and need screen carefully items ordered ostensibly for Hong Kong but in fact intended transshipment.
Colonial Secretary said economic intelligence officer (Clinton) would work closely with ConGen in plans determining Colony’s requirements and referred to government’s implementation screening panel (reported ConGen despatch 835 December 14)2 in response [Page 689] ConGen’s earlier expression hope government would do more insure goods ordered would be consumed Hong Kong.
While ConGen will report in detail by despatch its thoughts and suggestions re new enforcement procedure Hong Kong and Macao items it meanwhile stresses importance ConGen decide on merits items ordered by those colonies the diversion to Communist China of which would result in benefits. ConGen has endeavored in its weekly (BW47W46) and spot reports3 point out local government up against heavy internal pressure vested interests whenever attempting go along with our suggestion implement (a) controls comparable US or (b) administrative controls meet unusual situations (recent embargoes export Communists tin plate, black plate, raw cotton done only at ConGen insistence before considering government’s request US supply greater quantities these items for local industries).
As mentioned last paragraph mytel 1535, December 14,3 ConGen believes. Hong Kong Government now responsive US demand stiff assurances that no US cargo be allowed transshipped China, that it revise immediately its export procedures to require bills of lading or other untamperable evidence of origin accompany export applications (at present shippers statement country origin accepted without question), that Hong Kong Government be expected report ConGen promptly any party falsifying documents designed effect export US origin materials to China and that guilty parties be denied future US export privileges. Other conditions might be (a) insistence UK speed up adding more items to Hong Kong embargo list for China (economic intelligence officer said UK has been studying this question last two weeks) and not allow shelving for months for fear offending Peking and (b) special attention prevent illicit traffic Macao.
Macao’s basic needs most items can be quickly estimated. Certifications by Macao Government as to intended local consumption US imports would be largely worthless and on account known Communist pressure Macao could not be recognized by ConGen under any circumstances.
Department may be assured ConGen will make every effort have governments respect assurances re local consumption US goods and will recommend (a) cutbacks of items believed supplied in excess needs and (b) discipline parties guilty improper disposition imports.
Department pass London sent Department 1695 repeated info London 71. [Hunt.]