893.51/7683: Telegram
The Chargé in China (Vincent) to the Secretary of State
[Received 1:34 p.m.]
403. In March last year the British Ambassador22 notified the Embassy that he was sending a memorandum to the Foreign Office suggesting that the Chinese Government take measures to prevent the Japanese and other enemy nationals from realizing upon such Chinese Government bearer bonds as might come into their possession [Page 415] and suggested that the Embassy might wish to take similar action. The Ambassador replied that he did not feel that it would be appropriate to make an official approach in this matter but he did write to Dr. Arthur Young, adviser to the Chinese Minister of Finance, on the subject. In April the Ministry of Foreign Affairs gave the British Embassy a reply describing the measures it was taking, measures which were somewhat indefinite and not considered by the British Embassy as satisfactorily meeting the situation. Pertinent correspondence being forwarded by pouch.
Dr. Young has now informed me in conversation that the subject has been receiving consideration and recently the conclusion had been reached to effect registration of Chinese Government foreign currency bonds held abroad, and, in view of actual or potential enemy seizure of such bonds held in places now occupied by the enemy in Europe as well as the Far East, to effect registration while communications and movement of securities from country to country are under strict control. Dr. Young stated that the Chinese Ambassadors in Washington and London24 have been given instructions on the subject (it is understood that Wellington Koo now en route to London via America is carrying those instructions with him) but before taking action they are to discuss the subject with both governmental and private authorities of United States and Great Britain.