893.51/7085½
The President of the Chinese Executive Yuan (Chiang) to President Roosevelt67
The Chinese Government and people, in their bitter struggle against aggression and lawlessness in international life, deeply appreciate the valuable friendship and assistance which the American Government has shown them in the past.
Japan’s military advance having been bogged down, her undeclared war on China has developed into primarily an economic warfare. Recently the strain on our currency has been aggravated by the announcement of the possible creation of a puppet bank of issue at Shanghai and by the worsening of the European situation, resulting in unprecedented rise of prices and fall of exchange. Unless our exchange resources are strengthened, deterioration of conditions would continue to the further disturbance of trade, while the collapse of our currency would inevitably discriminate against American economic interests. The recent spontaneous appeal of the American Information Committee at Shanghai, urging your Government to extend loan for the support of Chinese currency, was undoubted [ly] prompted by the conviction that Japan’s renewed attack on Chinese currency is seriously detrimental to American trade.
To meet the present situation the Chinese Government has taken action to curtail all postponable expenditures and reserve internal credit, and to carry out internal policies designed to help upholding the value of the currency.
The Chinese Government has also augmented the stabilization fund, chiefly from the resources of Chinese banks, but also with a contribution from a British bank.
While these measures should permit the tiding over of immediate difficulties, China needs further cash resources to cope with possible developments after the present funds are exhausted and to slow down the rate of deterioration.
[Page 657]I therefore earnestly hope that the American Government under your illustrious leadership can at this strategic time see its way clear to broaden the scope of financial assistance to China by taking into consideration the possibility of supporting the Chinese currency by a cash loan or by other effective means which your financial experts may suggest.
I trust that you, Mr. President, will not hesitate to help our national cause to the fullest extent, particularly at a time when our staunch struggle is approaching the decisive stage of success or failure. If, as I hope, you are favorably disposed to these proposals in principle, I shall be glad to appoint a representative for the negotiation of detailed arrangements.
- Photostatic copy obtained from the Franklin D. Roosevelt Library, Hyde Park, N. Y. This telegram was transmitted by the Chinese Embassy under date of May 28.↩