The Chinese Minister (Sze) to the Secretary of State

The Chinese Minister in presenting the accompanying memorandum from Dr. H. H. Kung, Minister of Finance at Nanking,42 desires to make the following observation:

By making all purchases from China desired quantities could be obtained more expeditiously and advantageously and with less inducement to speculation than by buying from many sources and the Chinese Government can thus obtain necessary supplies without the risk of smuggling to take advantage of a higher price abroad. American buying at London or other open markets at a price above the value in China necessarily invites smuggling. For these reasons the assurance of American purchases made in China only from the Central Bank of China is no great assistance against smuggling. Moreover an exclusive arrangement would facilitate the government in obtaining desired quantities from the Chinese public.

  1. See supra.