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

740.00115A PW/11–744: Telegram

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

Bern, November 7, 1944—2 p.m.
[Received 11:44 p.m.]

7386. American Interests—China. Your 3768, November 4. De Pury³⁰ convened meeting November 6 of representatives United States, British and Netherlands Legations to whom he handed memorandum which follows air mail.³¹ Main points are as follows:

1. Fontanel considers price inflation cannot be checked and will continue at increasing rate.³²

2. Sums now necessary assure minimum comfort entirely disproportionate materials benefits received.

3. Renewed representations Tokyo to obtain more favorable exchange rate would have little likelihood of success.

4. If relief payments again interrupted (please see Legation’s 1078, February 22) during conduct negotiations which may be lengthy, situation those concerned will be more precarious than during previous interruption because they now have no reserves available.

5. Purchase of CRB dollars on free market is impossible because (1) Fontanel cannot make any without authorization Japanese Consulate which exercises control over all funds utilized in protection foreign interests and (2) all sums must be remitted by official channels at official rates.

6. Matter is most urgent.

7. Suggestion advanced three interested governments might make collective approach to Japanese with view obtain facilities for assistance their nationals.

De Pury, therefore, suggests two possible solutions: (a) Urgent examination possibility general repatriation by use neutral ship with Japanese crew (please see Legation’s 7047, October 24, noon [midnight])³³ or (b) arrangement for sending relief in kind similar present arrangement between United States and Japan for transportation via Nakhodka.

During general discussion it was brought out that question of repatriation including tentative Japanese suggestion (See Legation’s 7047, October 24, noon [midnight]) already under consideration but that no early solution along this or alternative line of relief in kind could be hoped for.

Foreign representatives agreed submit Protecting Power’s suggestions their Governments. At same time De Pury undertook telegraph again to Fontanel requesting he use every endeavor Japanese to make further concession concerning official exchange rate for relief purposes.

British representative indicated relief for British nationals for November not yet approved by London.

Harrison

30. Arthur de Pury, Chief of the Division of Foreign Interests in the Swiss Foreign Office.
31. Despatch 9807, November 8, not printed.
32. The memorandum indicated that the cost of living in occupied China had tripled “since about six months”. The annex to the memorandum gave a comparison of prices as of June 1 and November 1. (740.00115A PW/11–844)
33. Post, p. 1092. For Department’s response to this suggestion, see telegram 3851, November 11, 11 p.m., to Bern, p. 1094.