Office of the Historian

893.51/7698: Telegram

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

Chungking, July 16, 1943—1 p.m.
[Received July 19—1:30 p.m.]

1200. TF–138. To Secretary of Treasury only from Adler. Department’s 658, May 24.

1.
Dr. Kung has asked me to transmit the following alternative plan to you for your consideration.
  • “a. Remittances to persons in enemy occupied areas in China including airmail telegraphic transfers are to be permitted through the Bank of China in Chungking from the Bank of China in New York as designated agents of Central Bank of China.
  • b. These remittances would be governed by the procedure set forth in General License 75. The Central Bank of China as the appointed agent of the National Government of China is to be responsible for a review of each remittance in Chungking and would decide as to whether it was desirable for the beneficiaries to receive such funds. The Chinese Government through its appointed agent the Central Bank of China or such other agent or agents as it may see fit to appoint from time to time would exercise care to make certain that the remittances would not benefit the enemy forces.
  • c. As in Treasury plan.
  • d. The Central Bank of China will consider appointing the Hong Kong Bank as an agent to effect remittances as noted in paragraphs a and b if and when the Hong Kong Bank applies directly to the Central Bank.”
2.
It will be noted that the main difference between Dr. Kung’s plan and the Treasury plan is that the former puts Central Bank in center [Page 428] of picture and emphasizes its role as appointed agent of Chinese Government. This is in line with previously reported current trend towards strengthening Central Bank.
3.
In view of fact that Board members were aware that Dr. Kung had already expressed his views on the plan, when it came up for discussion at last Board meeting Chinese members abstained from making comment on the plan. They would not commit themselves to anything more than statement that Board “takes note” of plan. For your information, previously in private conversations Chairman indicated general approval of Treasury plan while Pei36 made recommendation that Board be appointed reviewing agent, Bank of China to make its facilities available to Board in so far as necessary. Perhaps satisfactory solution would be to adhere to substance of Treasury plan adding provision that Board be reviewing agent while giving some face to Central Bank by mentioning it in one or two places.
4.
Delay in answering your cable due to fact that in view doubt surrounding Board’s future chairman deferred calling meeting of Board for over 1 month. [Adler.]
Atcheson
  1. Tsuyee Pei, member of Board and general manager of Bank of China.↩