893.48/1618a: Telegram

The Secretary of State to the Consul General at Hong Kong (Southard)

Please forward to the Ambassador at Chungking by first available safe hand code text of message as follows: [Page 546]

“For your strictly confidential information. With reference to the statement contained in your 370 of July 25, 4 p.m.,20 the Chinese Ambassador has not seen fit to inform the Department of any developments concerning these matters.

On August 3, however, he called at his request on the Secretary and, referring to the cotton and wheat credit of 1933 in the amount of $50,000,000, said he desired earnestly to request that the balance of this credit which had not been utilized amounting to $32,000,000 be now made available for purchases of cotton cloth and wheat flour for the relief of 100,000,000 of the Chinese population. The Secretary replied that he would look into the matter during the next few days and have a further talk with the Ambassador.

While the Department is prepared to explore in this connection such lines of possible action as appear to be practicable and appropriate, there are of course various difficulties in the way of carrying out the Ambassador’s proposal for renewing the credit arrangement of 1933.

As you know, this Government is already affording material assistance to the Chinese Government through silver purchases in an otherwise unsupported market. Also, the extension of limited credits in appropriate cases has been and is being considered by the Import and Export Bank. Our Ambassador at Paris has been informed by the Chinese Ambassador there that, pursuant to a suggestion by the Secretary of the Treasury, Mr. K. P. Chen will shortly proceed to Washington for the purpose of looking into possibilities of obtaining a credit for the purchase of agricultural commodities.”

  1. Not printed; it reported alleged loan discussions.