840.51 Frozen Credits/2756: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received 2:50 p.m.]
320. Reference Department’s No. 165, July 25, 7 p.m. While long and intensive air raids are practically immobilizing all communications and all activity at Chungking, the message under reference was handed to Fox Sunday afternoon.43 He is now quartered in the second range of hills beyond south bank of river.
I saw Generalissimo late Tuesday afternoon. Accompanied by Fox. Minister for Foreign Affairs also present.
Upon informing Generalissimo of the action taken to freeze Japanese and Chinese credits, he commented that our action is beneficial to China.
While Fox has reported that the Minister of Finance was concerned regarding freezing of Chinese Government funds, the Minister for Foreign Affairs, in my conversation with him during the journey to and from residence of the Generalissimo, made no such comment and expressed himself as understanding our action fully.
Fox took occasion to make the point clear in our conversation with Generalissimo that Chinese Government and Government Bank funds had been immediately unfrozen by license following the initial freezing.
- July 27.↩