893.5151/905½
Memorandum of Conversation, by Mr. Willys R. Peek of the Division of Cultural Relations
Dr. Joseph Beech was for many years President of the West China Union University at Chengtu, Szechuan, China, and now that he has retired, still retains some connection with that institute.
Among other remarks, Dr. Beech said that he felt there was something wrong in a situation which compelled the missionary organizations [Page 549] in the United States remitting money to the West China Union University to make their remittances through the Bank of China and receive for their drafts between $18 and $19 Chinese national currency, when the same drafts sold in the “black market” would yield in the neighborhood of $100 Chinese national currency. It seemed to him, as a layman, that somebody must be making an unwarranted profit out of funds contributed by Americans for the assistance of the Chinese. For example, Dr. Beech said he had heard of a case where a Chinese was given a draft in American currency to pay his travel expenses from China to the United States and through the assistance of a Chinese friend (presumably in banking circles) had sold the draft, purchased the transportation, and still had American money in his pocket when he arrived in the United States.
Dr. Beech permitted Mr. Peck to retain a copy of a letter dated October 14, 1942,97 from Dr. Phillips F. Greene, Director, American Red Cross Relief Operations in China, to Mr. Richard F. Allen, Vice-Chairman, Insular and Foreign Operations, American Red Cross, Washington, D. C. This letter indicates, inter alia, that the expenses of the members of the American Embassy for food alone in September averaged U. S. $275.00 per person.
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