811.515–Silver/121
Memorandum by the Adviser on International Economic Affairs (Feis) to the Secretary of State
Mr. Secretary: I have been keeping the Secretary of the Treasury advised of the fact that we have heard rumors from the Far East regarding the possibility that Japan might declare war on China sometime this week; and for that reason steps preparatory to the issuance of a neutrality proclamation were being studied. The Secretary said that the chief problem that was up to him was what he should do in relation to China. He had already bought some 50,000,000 ounces of silver. He was considering within the next day or two letting the Chinese know that he was prepared to buy 50,000,000 more ounces and advise us by letter. I said I did not think the Department wished to make any comment.