Foreign Relations of the United States: Diplomatic Papers, 1944, The Near East, South Asia, and Africa, The Far East, Volume V

740.00115A P.W./9–3044: Telegram

The Secretary of State to the Minister in Switzerland (Harrison)

Washington, October 10, 1944—8 p.m.

3482. American Interests China. Reurtel 6304, September 23.⁷ Department approves increase in basic monthly loan for an uninterned American adult in occupied China to 14,900 CEB dollars beginning September 1st. For budgetary and other reasons it is impracticable for Department to give Fontanel authority to increase financial assistance payments with each rise in cost of living but will consider specific recommendations which he may make.

Inform Swiss Foreign Office that Department authorizes it to place necessary United States official funds at the disposition of Fontanel to pay proportionate share of expenditures made available to Intercross for transmission to internment camps in occupied China and to pay proportionate share of necessary relief payments independent of individual financial assistance loans. It is noted that the total of these relief payments is estimated at 60,000,000 CEB dollars. An enclosure to your despatch 9000, August 12,⁸ gives number of interned American, British and Netherlands nationals entitled to comfort allowances on May 4 and shows that slightly more than 11 per cent of them are American nationals. It is assumed that there has been little change in the proportions since that time and that the United States share of the 60,000,000 CEB dollars would be approximately in the same ratio.

Ask Swiss Foreign Office to suggest to Fontanel that he endeavor to make gifts through Red Cross and supply necessary camp equipment to camps at Weihsien, Canton and Peking on same basis as to camps at Shanghai.

Fontanel should be requested to submit monthly telegraphic report showing separately amount expended during previous month in payments to interned American nationals, to uninterned recipients, to Intercross for internees and for camp equipment or other authorized purposes. Any recommendations which he may care to make might accompany these reports.

Reurtel 6514 September 30 Department desires report giving date when funds first obtained at more favorable rate.⁹ Results Foreign Office suggestions to Gorgé regarding proposed use blocked funds are awaited with interest.¹⁰ Request Swiss Foreign Office to convey to Gorgé this Government’s appreciation of his great service to the United States in obtaining the more favorable exchange rate, and similarly to Fontanel for his handling of the exchange situation and his constant protection of American nationals.

Hull

7. Telegram not printed.
8. Not printed.
9. Telegram 7051, October 24, 4 p.m., from Bern, reported the “first transmission funds at more favorable rate made August 18 at 9.18 Swiss francs for 100 CRB dollars.” (740.00115A P.W./10–2444)
10. Airgram 71, January 10, 1945, 3 p.m., from Bern reported the Japanese authorities had agreed to deblock CRB $29,500,000 at Shanghai, of which Mr. Fontanel would use CUB $1,760,000 for assistance to Americans and CRB $3,358,730.71 to cover administrative expenses incurred in representing American interests (740.00115A P.W./1–1045).