Foreign Relations of the United States, Diplomatic Papers, 1939, The Far East; The Near East and Africa, Volume IV

893.102 Tientsin/464

Memorandum of Conversation, by Mr. Walter A. Adams, of the Division of Far Eastern Affairs

[Washington,] August 9, 1939.

Participants:	Mr. Tswen-ling Tsui, First Secretary, Chinese Embassy
	Mr. Hamilton
	Mr. Adams

Mr. Tsui called at his own request and handed Mr. Hamilton the attached translation of a telegram of August 8, 1939, from Dr. H. H. Kung, Chinese Minister of Finance, in which there is solicited the concern of the Government of the United States in regard to the question of certain silver deposits in Tientsin. Mr. Hamilton explained that the attitude of this Government toward the Tientsin situation was perfectly clear: that through statements by the Secretary and in such other ways as seemed to be appropriate and practicable this Government had made clear that, while it was not concerned in certain aspects of the Tientsin situation, it was concerned and interested with regard to the broader issues arising out of and involved in the Tientsin situation, including the question of currency.¹⁶ Mr. Hamilton said that this Government was desirous of being as helpful as practicable in regard to the currency situation, having in mind all the circumstances involved. He pointed out, however, that with respect to the actual custody and protection of the silver on deposit at Tientsin our position was different from that of the British and French authorities. He said that he understood that the silver was in non-American banks located in the British and French Concessions.

Mr. Tsui said that he understood that this was so and indicated that he also understood the distinction which Mr. Hamilton had made.

It is thought that Mr. Tsui does not expect a further reply to the message under reference.

[Annex]

Translation of a Telegraphic Message From His Excellency Dr. H. H. Kung, Dated Chungking, August 8, 1939

Ambassador Quo¹⁸ reported that he called on the Assistant Under Secretary of State of Foreign Affairs in regard to the question of the silver deposited in Tientsin. The Assistant Under Secretary stated that the British Government would firmly hold to their position. When Ambassador Quo asked about the outcome of their conversations with the American and French Governments, the Assistant Under Secretary replied to the effect that the French Government expressed their concern over the question, but the American Government disclaimed any direct relationship.

The silver which is a part of the reserve for the Chinese currency has been in the custody of the Tientsin Office of the Currency reserve Board. The ownership of the silver is known to all Chinese and foreign nationals. Last year when the puppet bank was established and attempts were made to seize the silver, the Chinese Government took the occasion to re-affirm its ownership of the silver so as to prevent its seizure by the Japanese and their puppets.

This question which is an integral part of the currency question, cannot but concern directly or indirectly all those countries having commercial relations with China. If what the British Government said is true, there must be some misunderstanding on the part of the American Government’s attitude toward this matter. Please explain the situation fully to the State Department with a view to soliciting its concern over the matter so as to help the British maintain their stand. Such a move will directly maintain our currency and indirectly protect the trade interests of the United States in the Far East. It is our earnest hope that the American Government will be as helpful to us in this regard as it has always been.

16. See also vol. iii, pp. 348 ff.
18. Quo Tai-chi, Chinese Ambassador in the United Kingdom.