893.102 Tientsin/578
Memorandum by Mr. Walter A. Adams of the Division of Far Eastern Affairs of a Conversation With the First Secretary of the Chinese Embassy (Tsui)3
Mr. Tsui called at the Department in response to a telephoned request from Mr. Adams. Mr. Adams referred to Mr. Tsui’s call on Mr. [Page 845] Ballantine on January 29, 1940, when Mr. Tsui left with Mr. Ballantine a formula tentatively agreed upon between the Chinese Government and the British Ambassador to China in regard to silver stored at Tientsin.4 Mr. Adams reminded Mr. Tsui of his question whether the Department perceived objection to the deposit of the balance of the silver in the National City Bank of New York as mentioned in point two of the formula.mr. Adams communicated orally to Mr. Tsui the substance of the attached “Informal Record of Oral Comments”5 and then handed him a copy of it.
After reading the memorandum Mr. Tsui remarked that of course the American Government would understand that the Chinese Government could not undertake to obtain the assent of the Japanese to the formula.mr. Adams replied that he understood that the British were in touch with the Japanese in regard to the silver under discussion.
Mr. Tsui then said that he did not understand how complications for the National City Bank could arise in connection with the storage in its vaults of the silver because the Bank was in the British Concession and the British would therefore be responsible for the protection of the Bank and the silver. Mr. Adams said that if this was the case he could not see that any advantage would be gained by moving the silver which was understood to be stored now in the British Concession. Mr. Tsui replied that the Japanese would be less likely to attempt to seize the silver if it were stored in an American bank.
Mr. Adams emphasized the desire of the Department to be helpful in the matter and Mr. Tsui expressed his appreciation of this attitude and said that he would report the matter to the Chinese Ambassador.