893.51/7655: Telegram
The Secretary of State to the Chargé in China (Atcheson)
Washington, May 24,
1943—7 p.m.
658. For Adler from the Secretary of the Treasury. Department’s 380, March 20, and your cable of March 28, TF–102.
- 1.
- The Treasury proposes for the consideration of Dr. Kung and the
Stabilization Board the following program for effecting remittances
from the United States to occupied China.
- (a)
- The Bank of China, New York Agency, or any bank in the United States, including Hawaii, designated by it, would be permitted to effect remittances including telegraphic and air mail transfers to persons in occupied China through the Bank of China, Chungking.
- (b)
- Such remittances would be effected in accordance with procedure outlined in General License No. 75. The Chinese Government would assume the responsibility for reviewing in Chungking each such remittance to determine the desirability of providing funds to such beneficiaries, and would ensure that the effectuation of such remittances would not result in a benefit to the enemy.
- (c)
- Censorship officials in the United States would be informed by the Treasury that no instructions (other than those sent by the Bank of China, New York Agency, or other bank designated by it, to the Bank of China, Chungking) should be permitted to go forward from the United States to China which directed persons in unoccupied China to send funds to persons in occupied China. Instead, Censorship officials in appropriate instances would inform the senders of such instructions that they should contact the Bank of China, New York Agency, or other satisfactory bank designated by the Bank of China, with regard to such transactions. The Bank of China, New York Agency, or banks designated by it, on being contacted by these individuals, could effect the remittances in the manner outlined in (a) and (b) above, thereby subjecting such remittances to the controls of the Chinese Government.
- (d)
- We are considering the desirability of permitting remittances as specified in (a) and (b) above to be effected also by Hongkong and Shanghai Banking Corporation, New York. We would appreciate your comments on extending such facilities to this bank.
- 2.
- The U. S. Treasury would be glad to receive the comments of Dr. Kung and the Stabilization Board on the above proposals.
- 3.
- The Treasury has been contacted by the Bank of China, New York Agency, regarding remittances to occupied areas in Kwangtung. The Bank of China suggested that Treasury’s General Ruling No. 11 be amended to permit remittances to occupied areas in Kwangtung. The Bank of China has been informed that revision of General Ruling 11 will not be considered by the Treasury at this time and that any arrangements made will be in the nature of an informal and confidential understanding. [Morgenthau.]
Hull