893.515/1377
Memorandum of Conversation, by the Chief of the Division of Far Eastern Affairs (Hamilton)
The French Ambassador called at his request. He said that he had a cablegram from his Government in regard to the currency and exchange situation in north China. He said that his Government was prepared to make representations at Tokyo and that his Government wished to make inquiry as to the attitude of this Government. He said that the French Government was making similar inquiry of the British Government. He said also that, in regard to whether or not French banks in north China should make their own practical arrangements, his Government was inclined to take the attitude that decision should be left to the French banks concerned.
I told the Ambassador that, as he knew, this Government had already made representations on a number of occasions to the Japanese Government in regard to the restrictions which were being imposed upon American interests in China; that we had already prepared a telegram to our Ambassador at Tokyo7 authorizing our Ambassador to make further representations; and that in this telegram our Ambassador was being authorized also to discuss the matter with his French and British colleagues. I said that I did not know whether that telegram had as yet been signed but that it had been sent forward for signature. I told the Ambassador that when the telegram was despatched I would inform his Embassy of that fact.8
With regard to American banks in north China and the attitude they should take, I said that we had just received certain additional details in regard to the currency and exchange situation in north China; that we were studying the whole matter; and that I was not at present in position to make any definitive comment. I said, however, that it was my understanding that the British Government could through the issuance of Orders in Council adopt measures which would protect British banks from suits by depositors for losses incurred as a result of an attitude which the banks might adopt, and that so far as I knew there was no American law which would similarly protect American banks and that the Executive had no authority to issue any regulation which would accomplish that purpose. I repeated that we were studying the whole situation. In response to the Ambassador’s request, I told him that we would inform him of our conclusion, when reached.