893.51/6736⅛
Memorandum by the Adviser on International Economic Affairs (Feis) to the Secretary of State
Mr. Secretary: The Secretary of the Treasury last evening requested me to bring before you the following—stating that he had tried to get in touch with you after the Cabinet meeting and later in the afternoon and had failed both times and that he was requesting me to bring the matter before you for the sake of expedition since it would come under discussion at his luncheon meeting with the President on Monday next, November 14.
He stated that the discussions which he had been conducting with Mr. Chen (and incidentally with Jesse Jones, Chairman of the R. F. C., and various American oil companies) in regard to a plan whereunder advances would be made to the Chinese Government, indirectly through corporations set up in the United States and China, against future shipments of tung oil from China, had been virtually completed the day before Canton fell into Japanese hands. He had suspended discussion to watch developments.
The project had then again been discussed with the President. The President had stated that if satisfactory assurances were received from Chiang Kai-Shek that resistance from [to] Japan would continue, he would carry through the project. The President had authorized him to communicate this word to Chiang Kai-Shek through Chen. He had done so. The assurances were now received in the form of the attached letter.43 The Secretary of the Treasury was of the opinion that the President’s promise had been directly passed to the head of the Chinese Government.
Upon the receipt of this message from Chiang Kai-Shek Mr. Morgenthau had informed the President and asked him to ascertain whether the Secretary of State would “acquiesce”. I attach the documents given me by the Secretary of the Treasury describing the projected transaction.43a