893.51/7075: Telegram

The Ambassador in China (Johnson) to the Secretary of State

218. My 209, May 8, 8 a.m.; 213, May 13, 10 a.m.; 214, May 13, 11 a.m., regarding stabilization of Chinese currency. Generalissimo asked me to call last evening and in presence of Commercial Attaché Arnold, Consul General Peck, Minister of Finance and Minister of Foreign Affairs65 pointed out that the economic situation now facing Chinese Government was extremely serious and that it gave him much more concern than the military situation. He expressed the appreciation of China for all that had been done in the way of assistance in this time of their need, pointed out that England and France could give little further aid because of the war in Europe and expressed the hope that the United States, now the only great power untrammeled by war, could take some action to aid the Chinese Government in supporting its national currency. He urged in the strongest terms that such aid be given within two months in order to enable China to meet the present grave economic situation. Said he was prepared to send some one to discuss matters if the United States was ready to help. The Generalissimo stated that he was sending a message direct to the President on this subject (I assume through Chinese Ambassador at Washington)66 and asked me to emphasize the seriousness of China’s needs.

2.
I made no comment other than to say that I would be glad to transmit the message which the Generalissimo had given me.
3.
It is my personal belief that situation justifies assistance.
4.
Present stabilization fund and its present operation offers an opportunity of rendering such assistance before such fund is compelled to retire from operation after which some special mechanism [Page 656] would have to be devised involving greater American responsibilities; it seems to me that it should be found possible in some way to make a contribution to this existing fund for the purpose of aiding American commerce and objectives in China.
Johnson
  1. Wang Chung-hui.
  2. For text, see infra. In despatch No. 535, May 18, the Ambassador in China forwarded to the Department a copy of the text as received from H. H. Rung (893.51/7085).