The Chargé in China (Vincent) to the Secretary of State
[Received April 29—10:15 a.m.]
621. For Secretary of the Treasury only from Adler. TF–114. Learn from a reliable source that Dr. Kung16 called a special meeting on April 28 of leading banking and financial experts to discuss British and American international monetary plans. The discussion which took place was intelligent and realistic. Almost all participants [Page 851] favored China’s joining in scheme for international monetary cooperation even though it entailed surrender of power to unilaterally change value of her currency. Repeated emphasis was called to the crucial importance of the fixing of the quota and to the need for transitional internal rehabilitation and readjustment measures before China could participate effectively. While a number of people felt British plan more flexible in certain respects, one believed it superior to American plan. Hsu Kan, Minister of Food, reflecting the consensus of opinion stated that though after abolition of unequal treaties China should [not?] expect encroachments on her sovereignty nevertheless as long as international affairs are not conducted by idealists China must realistically measure what she would gain against what she would lose.
He strongly favored Chinese participation as beneficial effects would accrue from monetary stabilization. He felt China had more to gain from supporting the United States since with the development of Chinese trade China would inevitably find Britain, but not the United States, a competitor.
The Minister of Finance summing up said China must participate and must work closely with America. He requested those present to submit to him proposals which China might make on the lines of the discussion. These proposals, which he warned the meeting should not be made tonight, will be worked into an integrated plan by the Ministry of Finance to be submitted to the Generalissimo for his OK. [Adler.]
- Chinese Minister of Finance.↩