893.51/7654: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received December 4—8:37 p.m.]
1425. Following information from British Financial Attaché (Hall-Patch) who is leaving soon for London en route thence to Washington: Negotiations for utilization of the British credit of 50 million pounds have been at a standstill for some time. Chinese have made proposals unacceptable to the British because inconsonant with British requirement that credit be used for purchases within [sterling area?] and for the period of the war only. Recently Wellington Koo1 made a “personal” approach to British Embassy with the knowledge of the Minister of Finance suggesting (1) credit be used to finance transfer of ships and machinery to China when near conclusion of war made it evident that Britain could spare ships and machinery useful to China, or (2) credit be used to take over loans to China secured on the Chinese customs. Neither proposition it appears was acceptable to the British, and no agreement has been reached for using the loan. Soong is non-communicative on the subject but hope is entertained that, when he makes his reported visit to London after his return to Washington, he may be able to work out a practical arrangement.
- Chinese Ambassador in the United Kingdom.↩