893.51/7694: Telegram

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

842. TF–127. To Secretary of Treasury from Adler. Re your 658, May 24.

Have submitted your proposals to Board and Dr. Kung and will report their views on each at earliest opportunity.
Re your 1 (d), I support extension of permission to make remittances to Hong Kong and Shanghai Bank on following grounds: (a) when and where possible it is desirable to help to mitigate or counteract existing unhealthy trend towards monopolization of business in hands of government or semi-government institutions. This is desirable from point of view of Chinese as well as foreign business interests; (b) granting permission to Hong Kong and Shanghai Bank will serve as precedent for subsequent inclusion of American banks which may decide to open branches in free China. [Adler.]