893.51/6733: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received December 3—11:15 a.m.]
1389. 1. In a conversation this noon Cadogan53 said the British Cabinet had under consideration a proposal looking toward the support of the Chinese currency.
2. The Chinese Ambassador here had approached the British Government regarding a loan, suggesting specifically that if British banks could provide a minimum of 3 million pounds to establish an equalization fund to support the Chinese currency, Chinese banks would supply an equal amount. The Hong Kong [and] Shanghai Bank would make the British loan under a Government guarantee.
3. Cadogan went on to say that the Ambassador had indicated that a larger loan, either 5 or 10 million pounds, would, of course, be better. Cadogan, however, intimated that the British Government, if it acted at all, would not be disposed to go beyond the 3 million figure.
4. Cadogan said he was uninformed as to whether the Chinese had approached us on this subject but if the British Government knew whether we were contemplating parallel action, this would naturally have an effect on their decision.
5. He expressed the opinion that the British had an interest in the maintenance of the Chinese currency and that the British Government [Page 577] had a right to look to the Japanese. He added that he thought the Japanese however recognized its value in their own interest. But he did not know whether they would object.
6. He indicated that the Government here would greatly appreciate receiving our reaction.
- Sir Alexander M. G. Cadogan, British Permanent Under Secretary of State for Foreign Affairs.↩