893.515/315

The Counselor of Legation in China ( Peck ) to the Secretary of State

Sir: I have the honor to enclose herewith a memorandum19 of conversation dated May 9, 1934, held by the American Minister with Mr. C. C. Ch’ien, Secretary General of the National Defense Council, on the subject “The Price of Silver and Conditions in China”.

The Department will note that Mr. Ch’ien is reliably believed to be intimate with General Chiang Kai-shek and the latter’s associates in the National Government and that, among other interesting statements, Mr. Ch’ien expressed the opinion that any artificial stimulation of the price of silver at the present time would do injury to the economic stability of China; that there is no doubt but that there is a relationship between the world price of silver and wholesale commodity prices in China; and that the present promise of increased stability and unity would be jeopardized by an economic crisis growing out of the artificial stimulation of the price of silver.

Very respectfully yours,

Willys R. Peck
  1. Not printed.