893.515/823: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received November 5—9:50 a.m.]
Reference my November 4, 8 p.m. Mackay, local manager, National City Bank, informs me that he is recommending to his company that they agree in principle to turn over their silver to the Chinese Government Banks but that they will hold it until they are sure that they have been protected against all suits.
Mackay states that on November 3rd he had a conversation with Hong Kong [&] Shanghai Bank in the course of which he learned for the first time that Hong Kong Shanghai Bank was committed to Chinese plan. He is also convinced by what he has been told by Pei44 of the Chinese Government Bank that the Hong Kong Shanghai Bank has agreed to give to the Chinese Bank credits abroad and that the Chinese plan eventually to dispose of silver to the United States Government. Mackay believes that Hong Kong Shanghai Bank must be getting some benefit to compensate them for their agreement to turn over silver and thinks it possible that this may be found in British Government’s relieving bank of liability in connection with silver clauses in leases and mortgages but he does not know. Part Hong Kong Shanghai Bank has played in view of its prior knowledge of the plans of the Chinese Government remains a mystery.
- Tsuyee Pei, Director of Central Bank of China.↩