893.515/501
Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck) of a Conversation With the Chinese Minister (Sze)
The Minister called and inquired whether anything new had developed in connection with the British Government’s approach on the subject of international assistance to China.
I replied that we had had nothing since the conversation between the Under Secretary of State and the British Ambassador some three weeks ago of which there had been news in the press.
The Minister said that he had now found that, as between the copy of the British Treasury’s communication to the Chinese Minister of Finance and the British Foreign Office’s communication (through the British Minister in China) to the Chinese Government, there were some differences in text. He said that it had been explained to the Chinese Government that the British Government’s idea of a détente in the Far East was that it was something desirable but not something to be laid down as a “condition”.
The Minister said that on March 18 the Chinese Government had replied to the British Government’s request for the former’s “views”; that the Chinese Government appreciated the British Government’s approach in the matter; that the Chinese Government shared the view that a détente was desirable; and that the Chinese Government would like to be informed by what method the British Government proposed “to arrange for the preliminary conversations”. I inquired what was meant by “the preliminary conversations”. The Minister said that this meant conversations with regard to the question of “the currency reform loan”. I said that it had been my understanding that the British Government had asked the Chinese Government to submit its idea of a “plan”. The Minister said that the British Government had asked for “views” and that the Chinese Government had made the reply indicated above but had not submitted any “plan”.
There followed some discussion of other matters.