195.91/2–2449: Telegram

The Consul General at Tientsin (Smyth) to the Secretary of State

123. APL vessel Fillmore called Taku February 19, offloaded 1280 tons commercial import cargo for Tientsin without incident and sailed for Shanghai February 22. This was first merchant vessel any registry to call Taku with general commercial import cargo since Tientsin taken January 15.

Lighterage handled by local Communist-controlled China Merchants Steam Navigation Company. APL agent desired use British private-owned Butterfield and Swire lighters but authorities refused on grounds B and S operations on Haiho88 not yet worked out.

Agent learned of vessel’s call February 2 telegram from his Shanghai office via Peiping due absence direct external communications to and from Tientsin. Discharge of cargo and lighterage was approved Yenan89 authorities several days prior vessel’s call and followed application to them by APL agent through local Foreign Affairs office.

Fillmore’s call raised morale isolated Tientsin foreign community and precipitated some official action toward reviving foreign trade, shipping, banking, external communications and travel by foreigners who heretofore not granted permits for movements out of city save for few KMA90 personnel go Tangshan mines. Procedure of a sort forthcoming with requirements of trade, travel and communications to be in process of formulation. This development might have been [Page 910] delayed for month if vessel had not come. While procedures not worked out in time to load Fillmore with export cargo or to carry outbound passengers, there is possibility issue regulations re export, banking, communications and foreign passenger travel prior arrival next APL boat expected 2 or 3 weeks. Applications for exit permits being accepted from local foreign residents as of February 21 and several already reported issued.

Business have raised question of consular invoices for ex[port] cargo shipments to US in view Communist nonrecognition foreign consulates. Ascertain if consular invoices at this Consulate General will be required on all export cargo for US. We believe we should issue consular invoices in interest of reviving foreign trade which Communists say they desire, [apparent omission] proved one of best means convey problems, desires of foreigners to local authorities. Captain Fillmore confronted authorities with making decisions on concrete problems re foreign trade and educated them more intercourse with foreign countries than month’s academic discussion. Agree helpful break log jam official indecision and inactivity problems raised by foreigners as this greatest problem faced by foreigners.

Believe we should continue issue consular invoices but at same time point out we do so only provisionally in view Communist attitude on recognition consular status. Apparent Communist desire revive foreign trade, believe certification of consular invoices might be used as lever bring recognition consular status.

Some shippers suggested possibility circumventing need for consular invoice certification at Tientsin by shipping via Hong Kong or other ports where invoices could be obtained. As certification consular invoices here might be strong bargaining point in informal dealing with local authorities, suggest consuls particularly Hong Kong be instructed refuse certification invoices covering cargo from this consular district. Request Department’s views through Peiping.

[
Smyth
]
  1. Hai River.
  2. Shensi headquarters of Chinese Communist Party.
  3. Kailan Mining Administration.