893.51/7655: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received December 8—4:05 p.m.]
1440. TF–72. To Secretary of the Treasury from Adler.
1. Returned to Chungking after 2 weeks each in Lanchow and Sinkiang. Delay in return due to irregularity of air service. Trip confirmed desperate need for imported goods in N. W. Sinkiang and Kansu provincial authorities gave assurances that they would give every facility to Board if it decides to open branch in N. W.
Re your message of November 12,2 Russian trade representative in Chungking indicates that Russia can supply some textiles, small metal goods and parts, Chinese medicines and possibly textile machinery and that he will inform Board of probable magnitudes involved in near future.
[Page 554]Report on economic situation in N. W.3 and replies to your 1082 of November 14 and your 1125 of November 21 following.
2. Re your 1065 of November 11, have transmitted information to Dr. Kung.
3. Regarding your 1114 of November 20.
- (a)
- Dr. Kung informs me that Chinese Government is not opposed to remittances to occupied territory as long as they are made via unoccupied China for following reasons: (1) Foreign exchange does not fall into enemy hands, (2) remittances have succeeded to maintain circulation of fapi in occupied areas in which enemy is trying to prohibit both the receipt of remittances from unoccupied China and the circulation of fapi. Moreover enemy acquired so much fapi in Shanghai and elsewhere that there is no question of such remittances increasing Japanese supply of fapi to an undesirable extent. (3) In many areas in Kwangtung enemy occupies only towns and communication points but not countryside to which a substantial part of remittances are sent. (4) He states overseas Chinese whose political influence here is considerable are most anxious that channels for remittances be maintained.
- (b)
- Mr. Pei, acting general manager of Bank of China which handles most of remittance business, informs that bank has recently opened branch in Shaping, city nearest occupied area, which remits fapi to “no man’s land” through contacts with Kwangtung “native” bankers. Mr. Pei added that in this work his bank handles only bona fide personal remittances and that the Minister has been notified from the “native” bankers that the remittances reach the families to which they are sent.
- (c)
- In view of the above, I see no objection to permitting the continuation of such remittances as long as they are made via unoccupied China. I should appreciate being informed of any cases of abuse which come to Treasury’s knowledge so as to be able to notify Chinese authorities. [Adler.]