Foreign Relations of the United States: Diplomatic Papers, 1943, China

893.51/7655: Telegram

The Secretary of State to the Chargé in China ( Vincent )

Washington , March 20, 1943—11 p.m.

380. For Adler from the Secretary of the Treasury. Your 1440, December 7, TF–72 and Department’s 1114, November 20, 1942.²⁵ Please discuss the following with Dr. Kung:

1. In accordance with the expressed desire of Dr. Kung that the effecting of remittances from the United States to occupied China should be allowed by the United States Government as long as such remittances are made through unoccupied China, the Treasury Department and Censorship officials in the United States have permitted all remittances to occupied and unoccupied China made in accordance with the provisions of General License No. 75. It is not clear, however, from your cable of December 7, TF–72, whether the Chinese Government desires the continuation of remittances through unoccupied China to fully occupied places such as Shanghai and Canton. The Treasury would be pleased to have Dr. Kung’s views on remittances to such places.

2. Treasury and Censorship officials are also concerned about instructions originating in the United States which are being sent by letter or cable to persons in unoccupied China directing them to forward funds to persons in occupied China, including Shanghai and Hong Kong and Kwangchowan. The Treasury and Censorship officials are concerned because there is no indication that such instructions are passed on or are even coming to the attention of the Government of China. Therefore, these instructions originating in the United States may be resulting in remittances to occupied China which are not being controlled either by the United States or Chinese Government. It is felt that such instructions should not hereafter be permitted unless adequate controls are in effect.

3. The Treasury would be pleased to have Dr. Kung’s reaction to this problem, including (a) whether the Chinese Government desires that the United States allow instructions to be sent by cable or by letter to unoccupied China which result in the transfer of funds to persons in occupied China, and (b) if the Chinese Government desires that the United States permit such instructions to go to unoccupied China, could such instructions be channeled through some agency of the Chinese Government, thereby assuring the U. S. Treasury that the Chinese Government was reviewing all instructions originating in the United States which had the effect of transferring funds from unoccupied to occupied China, including Shanghai, and Hong Kong and Kwangchowan.

4. The Treasury would be pleased if the Chinese Government considered this matter as urgent. [Morgenthau.]

Hull

25. Foreign Relations, 1942, China, pp. 553 and 549, respectively.