The Secretary of the Treasury (Morgenthau) to the Secretary of State

My Dear Cordell: The President returned to me the letter which I received from T. V. Soong, dated January 21, 1942,65 and attached [Page 450] thereto a memorandum, a photostat of which you will find enclosed herewith. Upon receipt of this memorandum from the President, I wrote a letter to Dr. Soong, a copy of which I am also enclosing.

There is also enclosed a photostat of a letter which I received January 27, 1942, from Sir Frederick Phillips66 stating the British position on the Chinese request.

I believe that with these enclosures you now have a complete file of my correspondence on the China loan proposal.


H. Morgenthau, Jr.
[Enclosure 1]

Memorandum by President Roosevelt to the Secretary of the Treasury (Morgenthau)

Memorandum for H. M. Jr.

I still think that this can be worked out as soon as Fox gets here. If they don’t want dollar notes, why don’t we buy Chinese yuans and use them for paying for the equipment of Chinese troops in China itself. I would be wholly willing to go up to twenty or twenty-five million dollars a month on some such basis.

F[ranklin] D. R[oosevelt]
[Enclosure 2]

The Secretary of the Treasury (Morgenthau) to the Chinese Minister for Foreign Affairs (Soong)

Dear Dr. Soong: I have received your letter of January 21, 1942, sending to me a message from the Generalissimo.

I am glad to follow your suggestion that I wait until Mr. Fox arrives in Washington before renewing discussions with you. I want to assure you, in the meantime, that the Generalissimo’s request is very much in my mind.

Sincerely yours,

H. Morgenthau, Jr.
  1. Department of State, United States Relations With China, p. 478.
  2. Ante, p. 447.