893.51/6631: Telegram

The Acting Secretary of State to the Ambassador in Japan ( Grew )

201. Your 389, June 18, 7 p.m.

The Treasury Department knows nothing whatsoever about the 500 million dollar transaction mentioned. With regard to the reported American loan to China on the security of silver, the Treasury Department states that there is no new feature in the arrangements with China; no credit is being extended on silver; and the Treasury is making periodic purchases in relatively small amounts in accord with its general policy of buying gold and silver the world over whenever offered, upon delivery in New York.
At the press conference today the Acting Secretary, in reply to an inquiry in regard to the report that a 500 million dollar loan is impending to China, advised the correspondents to consult the Treasury Department but added off the record that it was his understanding, after talking with the Treasury Department, that there was not a word of truth in the report.
You are authorized in your discretion to inform inquirers that the reports mentioned in your telegram under reference are without basis in fact so far as the information available to this Government is concerned.