Memorandum to E. E. Schnellbacher from D. P. Medalie, with Attachment

DEPARTMENT OF COMMERCE OFFICE OF INTERNATIONAL TRADE WASHINGTON, 25, D.C. September 12, 1951 In Reply Refer To: IT-1205 26-57 DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT HC NARS, Date 7.16.80 MEMORANDUM To: Mr. E. E. Schnellbacher, Assistant Director for Intelligence and Services From: D. P. Medalie, Director, Investigation Staff Subject: United States Firms doing business or connected with the Nationalist Chinese Reference is made to my memorandum dated August 15, 1951, addressed to Mr. E. F. Becker, subject same as above, insofar as it per- tained to the Yangtze Trading Corporation. Pursuant to your request, you are herewith furnished additional details from our file 26-7 pertain- ing to an investigation of the Yangtze Trading Corporation. This investi- gation was initiated by our New York Office, in February 1950, as the result of information developed during a general survey on shipments made via steamship lines going to Communist China, which survey was conducted in New York by our Mr. R. W. Lindsay. As a result of subsequent investigation by the Investigation Staff a charging letter was issued, dated April 10, 1951, and amended on May 10, 1951, wherein the Office of International Trade charged Yangtze Trading Corporation, E. Y. Soong, and other respondents with having violated the Export Control Act of 1949 (63 Stat. 7) and the regulations issued thereunder. An order (Case No. 102) which revoked and denied licensing privileges, was dated June 12, 1951, was signed by W. S. Thomas for John C. Borton, Assistant Director for Export Supply, and was transmitted to respondents. The order contained the following additional details: It is alleged in said charging letter that the above-named respondents knowingly exported from the United States, during August and September 1949, some 123 net tons of tinplate to a named consignee in Peiping, Tientsin, China, without the authoriza- tion of any license issued by the Office of International Trade, and that said respondents effected such exportation by falsely using two validated export licenses previously issued to respondent Yangtze Trading Corporation, and by falsely using, pursuant to collusive agreement with another licensee, a validated export license issued to and held by such other licensee, none of which