033.1190 Pierson, Warren Lee/2: Telegram

The Secretary of State to the Consul General at Shanghai (Gauss)

87. Department has received from the President of the Export-Import Bank a statement reading as follows:

“Mr. Warren Lee Pierson, President of the Export-Import Bank of Washington, is sailing from San Francisco on the S. S. President Hoover, April 3, for a brief visit to China and Japan. He will be accompanied by Mrs. Pierson.

The main purpose of the trip is to study existing economic conditions in the Far East and to obtain a first-hand impression of recent developments in that part of the world. Particular attention will be paid to the railway and highway expansion program now in progress in China.

No unusual significance is to be attached to Mr. Pierson’s journey to the Orient because it is pursuant to an established plan whereby the head of the Government’s export credit agency can keep informed on matters of particular interest to that institution. Last year Mr. Pierson visited Great Britain, France, Germany and Sweden on a similar mission.

A considerable number of applications from American firms desiring financial assistance in connection with sales to China have been received by the Export-Import Bank. It is believed that these will be given further study by Mr. Pierson while he is on the ground but no immediate action thereon is contemplated. It will be recalled that the credits previously extended to the Government of China by the Grain Stabilization Corporation and by the Reconstruction Finance Corporation were acquired by the Export-Import Bank last year. The Bank, therefore, has a substantial investment in China at the present time.”

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Department is not aware of Mr. Pierson’s itinerary in China and Japan but understands that he will proceed directly to Shanghai and that he desires at all times no publicity.

Department desires that American diplomatic and consular officers render to Mr. Pierson appropriate cooperation and assistance.

Inform Nanking and Tokyo promptly by mail of the foregoing and of the Department’s desire that this information be communicated to consular offices in Japan and China and Hong Kong.

Hull