Office of the Historian

840.51 Frozen Credits/2712a: Telegram

The Acting Secretary of State to the Ambassador in China (Gauss)

Washington, July 25, 1941—7 p.m.

165. Following is a paraphrase of a message for Fox from the Treasury Department:

Ambassador Gauss is being informed by the Department of State and you are hereby informed that effective 9 a.m., Eastern Standard Time, Saturday, July 26, Freezing Control will be extended to Japan and China.35 Extension to China is undertaken pursuant to General Chiang Kai-shek’s wishes as previously indicated to this Government. We suggest the desirability of the Ambassador and you immediately getting in touch with General Chiang, assuring him of our purposes and explaining to him that this Government is very desirous of obtaining the Chinese Government’s close cooperation with a view to effectuating the order so that our mutual interests will thereby be served.

There will be immediately forwarded General Licenses from which it will be noted that we are undertaking all possible effort to minimize interruptions of Chinese trade and interference with transactions in the Chinese Government’s interests. Freedom of action for the Chinese Government and its banks and permission for the transfer of their funds by private Chinese citizens to the National Government and the Central Bank of China will be provided for by the issuance [Page 686] of General Licenses. Other transactions and trade that may be necessary will be facilitated without undue restrictions or delay by other General Licenses. A digest of the General Licenses will be sent to you shortly by telegraph.

As developments occur in the situation there may be modification of the various measures taken. The safeguarding of the interests of China and of the United States will be the objective of the administration of the various measures taken. We should appreciate having you ascertain such changes as may seem desirable in policy or administration in regard to the granting of licenses on Japanese or Chinese funds and having you keep us informed thereof so that careful consideration may be given to your recommendations in this respect. The full cooperation of the Chinese Stabilization Fund is desired and we are depending upon you to obtain such cooperation.

At the time of issuing of the Freezing Order, the White House is issuing a press release36 the text of which will go forward to you in a separate telegram.37 [Morgenthau.]

For the Ambassador: The foregoing is for your as well as Fox’s confidential information and guidance.

Welles
  1. Executive Order No. 8832, signed by President Roosevelt on July 26; Foreign Relations, Japan, 1931–1941, vol. ii, p. 267.↩
  2. Foreign Relations, Japan, 1931–1941, vol. ii, p. 266.↩
  3. Telegram not printed.↩