893.51/1–2946: Telegram

The Secretary of State to the Embassy in China

276. Depts attention has been directed to subject matter Urtel 179, Jan. 29, numbered paragraph 3, in joint letter66 signed by Vice Presidents National City and Chase Banks. Dept has also taken note press statement O. K. Yui reported first sentence, second paragraph Urtel 192, Jan 30.67

For your confidential information treasury Dept has been informed by U. K.68 Treasury representative here69 that British officials Shanghai were informed by O. K. Yui that British banks can receive export bills after completing registration with Chinese Govt. U. K. Treasury representative Wash, states that if after registration British banks are not allowed to handle export bills, Chinese banks in British territory may be prohibited from engaging in exchange transactions.

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Treasury and Dept request joint views of yourself and Adler on what action, if any, should be taken at present in addition to informal representations already made by Adler to Chinese authorities.

Reference Shanghai’s No 65, Feb 5, sent to Dept as No 156, Feb 6 [5], Dept has not been approached as yet by Chase and National City.

  1. Letter of January 30, not printed.
  2. Not printed; Mr. Yui was reported by Mr. Adler to have said that the rights and obligations of foreign banks in China would be on an equal basis with those of Chinese banks.
  3. United Kingdom.
  4. Robert Henry Brand.