893.48/1631½

Memorandum by the Chief of the Division of Far Eastern Affairs (Hamilton) to the Secretary of State

Mr. Secretary: Pursuant to your suggestion, I saw the Chinese Ambassador and endeavored to obtain further information in regard to the Ambassador’s proposal that this Government extend credits to China for relief purposes.

As you will note from the attached account of my conversation with the Ambassador,25 the Ambassador has only a very general idea but stated that if and when you were in position to inform him that this Government was favorably disposed in principle, he would wire his Government for details.

The chief difficulty would appear to revolve about the practicability of effecting distribution.

It seems to me that the most practicable way of proceeding with consideration of the matter would be to await the return to Washington of Secretary Morgenthau, who returns on August 29, and then to discuss various possibilities with him. The question whether Mr. K. P. Chen is or is not coming to the United States may be important in this connection.

M[axwell] M. H[amilton]
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