893.5151/12–345: Telegram
The Secretary of State to the Chargé in China (Robertson)
Washington, December 3,
1945—11 p.m.
1930. For Adler from the Secretary of the Treasury.
- 1.
- Pei called at Treasury on November 8 and 9 to discuss the proposed
general license (refer our #1757 dated October 29, 1945, your #1911 of
November 2 and #1955 of November 10) and related problems. For your
information, the results of our discussions are given below.
- (a)
- Pei indicated that he might recommend to his government that it request Treasury to include China in the new license when it is announced but further to request that the announcement should state that the license is not effective for China until February 1, 1946. We informed Pei that it would be legally possible to do this but could not state in advance of receiving China’s request what the Treasury’s policy on such request would be. In view of Chinese request contained your #1955 we are, of course, including China in the new license effective on the date of issuance which we now expect to be within a week.
- (b)
- In addition, we explicitly informed Pei that due to increasing pressure here from U. S. nationals, as well as U. S. business-men, we [Page 1189] would take no steps to force such nationals to use the official rate of exchange, even if controls over current transactions were not lifted.
- (c)
- Pei took the position, in response to our query as to the status of his proposal to establish exchange rates reflective of changing conditions, that the Chinese Government would, at a later time, establish a “more reasonable” rate.
- 2.
- Do you feel that the Treasury has now received a reasonably satisfactory reply to Secretary Vinson’s request to Dr. Soong84 for some arrangement which would meet the needs of American businessmen, particularly in view of our contemplated general license regarding current transactions? If not, what lines of approach to the Chinese do you suggest? [Morgenthau.]
Byrnes