893.51/7686: Telegram

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

464. Secretary of the Treasury from Adler. TF–102. Reference your 380, March 20.

Dr. Kung informs me that he would prefer to have remittances from the United States even to fully occupied China maintained as long as they are effected in accord with general license 75 and via Chungking, so that they are subject to Government control. He indicated that many families in occupied areas, particularly certain areas in Kwangtung, are dependent for their livelihood on support from [Page 417] relatives abroad and that to cut off such support would rouse discontent among overseas Chinese whose political influence is out of proportion to their numbers.
Dr. Kung has no objection to instructions being transmitted from the United States to unoccupied China which result in the transfer of funds to occupied China. At the same time he welcomes your suggestion that such instructions be channeled through an agency of the Central Government. He stated that he will immediately take up the question of setting up such an agency with the Central Bank. I understood that the Central Bank intends to designate the Bank of China, Chungking, as its agent for this purpose and shall notify you as soon as arrangement is arranged. [Adler.]