893.51/7072: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received May 13—9:45 a.m.]
213. Minister of Finance63 asked me to call yesterday and after some general conversation he inquired as to effect of message sent by American Information Committee64 in Washington. He said that the Generalissimo had talked with him day before and now would probably wish to send a message to the same effect. I inferred from import of his remarks that message would be in form of an appeal for assistance from American Government in support of Chinese efforts to maintain currency which means that he spoke of American assistance to France in this field and referred to information which had reached him, quoted, he said, from statements made by American examiners, to the effect that there were on deposit in American banks about a [Page 654] hundred millions in United States currency belonging to Chinese banks and individuals in China representing capital which had fled the country. Referring to information contained in the press to the effect that steps had been taken by the United States Government to freeze overdrawn resources in the United States of neutral countries seized by Germany, he wondered somewhat vaguely whether it might not be possible for the United States Government to supply China with information as to names of such depositors in order that the Chinese Government might itself take some steps to use such funds in its own interest or whether the American Government might not utilize these Chinese funds in measures to aid in stabilizing Chinese currency. He made no requests in these matters other than to ask whether I could tell him how the telegram of the Information Committee was received in Washington. Dr. Kung remarked that he had pointed out to the British Ambassador that at least half the sums raised and used in the British-Chinese revenue fund had found their way back into British commercial hands, thus benefiting British and other foreign business; he said to me that China was suffering through her efforts to keep the market at Shanghai open; that having no control over the foreign banks or foreign merchants and brokers in Shanghai, China was crippled in steps desirable to make her support of her currency successful; that the collapse of Chinese currency would bring disaster to American business and investments in China as well as destroy China’s ability to resist in economic fields; and that he hoped that the American Government would feel that it could take some step to protect the American commercial position and make a contribution toward the stabilization fund. I wish to state again that this was the drift of his conversation. Dr. Kung made no specific requests. I came away convinced that he was preparing the way for a message perhaps addressed directly to the President by the Generalissimo somewhat along above lines. I may add that Dr. Young yesterday quite independently inquired whether Dr. Kung informed me that he had been called in by the Generalissimo who inquired about situation regarding prices and effect thereon of present state of Chinese currency.