811.515 Silver/31
The Secretary of State to the Chinese Minister (Sze)
Sir: I wish to acknowledge the cablegram from Dr. H. H. Kung, Minister of Finance at Nanking, transmitted by you to the Department on October 2, 1934, and request that you be kind enough to transmit the following reply:
I regret the delay in the delivery of my message of September 22. I have endeavored in conversation with the Chinese Minister at Washington to state fully the attitude of this Government in regard to the preoccupations and suggestions put forward by the Chinese Government in your two messages, in connection with the execution of the American program of silver purchases.
In my discussion with the Minister, I have tried to indicate the purposes animating this Government in its silver purchasing program. This program is embodied in an Act of Congress which is mandatory, as to its general objective, upon the Executive. The ways and means to be used for carrying out this objective are left within the discretion of the Executive but of course must be consistent with the achievement of that objective.
This Government is desirous of so carrying out the program as to produce the general benefit that would result from the enhancement [Page 450] and stabilization of the price of silver, and to avoid so far as may be possible disturbances to the economy and public finances of China. Therefore in conducting operations under the Silver Purchase Act this Government while necessarily keeping within the general purposes of enactment, will give the closest possible attention to the possibilities of so arranging the time, the place and the quantity of its purchases as will keep in view the considerations put forward by the Chinese Government in its communication.
Free markets in which gold or silver could be acquired by purchases are now open to all nations, and therefore direct intergovernmental transactions have not been undertaken. The availability of such markets in the future is open to friendly discussion, especially because of our common desire to work towards common standards. We shall be glad at any time to explore these larger problems with your representatives.
Accept [etc.]