893.515/1337
Memorandum of Conversation, by the Chief of the Division of Far Eastern Affairs (Hamilton)
Mr. Lochhead of the Treasury Department telephoned and said that Chinese bankers now in this country discussing financial matters with the Treasury Department had recently stated informally to him that the Chinese Government had certain silver at Shanghai which was available for sale to the U. S. Treasury; that the U. S. Navy transport Chaumont was now in Chinese waters; that the Chaumont would probably need ballast on its return trip to the United States; that the Treasury might care to purchase this silver from the Chinese Government and have it transported to the United States on the Chaumont; and that if the Treasury Department was interested in this, it might also be interested in making similar arrangements for the purchase of silver now at Tientsin. Mr. Lochhead said that he had told the Chinese bankers that this would not, in his opinion, be a purchase by the Treasury Department of silver, but would be the purchase of a diplomatic incident which would go outside the range of pure Treasury business. Mr. Lochhead said that he had indicated to the Chinese bankers that the Treasury Department wanted to keep matters on a strictly financial basis.
Mr. Lochhead said that this whole matter had been handled by the Chinese bankers and by him in an informal and unofficial way. He said that he thought we would be interested in the approach made by the Chinese bankers and that, as he had mentioned to me once before in regard to the silver at Shanghai, the Treasury Department was in position, if we should so desire, to become interested in this silver.42
[Page 568]I told Mr. Lochhead that I thought that his rejoinder to the Chinese bankers would dispose of the matter and I thanked him for his thoughtfulness in informing us in regard thereto.