893.515/854a: Telegram
The Secretary of State to
the Ambassador in China (Johnson)
Washington, November 13, 1935—8
p.m.
17. This afternoon Treasury Department reached agreement with Chinese
Ambassador on the following arrangements:
- “(1) All proceeds from sales of silver to the United
States Treasury will be used exclusively for stabilization
of Chinese currency.
- (2) That funds secured from sale of silver to the United
States Treasury be kept on deposit in New York with agents
of Central Bank of China (it is understood that both the
National City Bank and the Chase National Bank be used for
this purpose).
- (3) That the United States Treasury representative in
Shanghai (Professor Buck) will be given fullest information
as to the disposition and employment of the Stabilization
Funds and that the United States Treasury be kept fully
informed during the next 12 months as to monetary
developments through him.
- (4) That the United States Treasury agrees to purchase up
to 50 (fifty) million ounces of silver .999 fine at 655/8
cents per ounce less all the expenses of delivery to United
States Mint at San Francisco, payment of this silver to be
made upon delivery of the silver on board United States
Steamship at Shanghai, free of any export tax or duty. This
silver may be delivered by the Chinese Government on or
before February 11, 1936.”
Please inform Buck. It is not intended to give any publicity whatsoever
either as to the existence or details of this arrangement.
