811.515/1701a: Telegram
The Secretary of State to the Ambassador in China (Gauss)
Washington, November
14, 1942—3 p.m.
1082. To Adler from Secretary of the Treasury.
- 1.
- Evidence has come into the Treasury that persons normally resident in the United States now in China before departing from China may be purchasing U. S. dollar-backed certificates and bonds and importing them, or receipts therefor, into the United States for possible sale in the United States. It is also possible that such securities are being exported from China to the United States through the mails.
- 2.
- It seems to us that not only would such transactions result in a dissipation of China’s foreign exchange assets without any compensating benefits to China, but also may make possible unwarranted and undesirable exchange profits through the use of existing black markets.
- 3.
- What is the attitude of the Chinese Government on the export from China of such securities or the evidences thereof and their possible sale in the United States? What are your personal views on this problem?
- 4.
- As you are undoubtedly aware, under Treasury General Ruling No. 5, the sending, mailing, importing or otherwise bringing into the United States from any foreign country, of any securities or evidences thereof or the receiving or holding in the United States of any securities or evidences thereof so brought into the United States is prohibited, except on condition that such securities and evidences thereof be immediately delivered for examination to a Federal Reserve Bank as fiscal agent of the United States. This General Ruling is ordinarily used to prevent the import into the United States of [Page 545] looted securities. However, it could be used to assist the Chinese Government in controlling the export of securities from China to the United States.
- 5.
- The Treasury would appreciate your sending complete information regarding the terms of the U. S. dollar-backed bonds and certificates which may be of assistance in examining these certificates and bonds under the procedure required by General Ruling No. 5. [Morgenthau.]
Hull