893.51/2—1549: Telegram

The Secretary of State to the Consul General at Shanghai (Cabot)

336. For Cabot and Parker from State & Treas. State and Treas do not consider that present conditions in China warrant grant or loan to China for purposes outlined urtel 550. For your background information [Page 742]only considerations which led to Secy Marshall’s21 expression of views on use of silver before House Foreign Affairs Committee on Feb 20, 1948,22 expanded statement subsequently submitted to committee23 and airpouched Emb Depins 165 Aug 13, 1948 to Nanking24 and Secy Snyder’s25 views expressed in letter Aug 30, 1947 to Secy Marshall26 transmitted to Emb as Airgram No. 138 of Sept 9, 194724 appear to be equally applicable even to limited operation of type outlined reftel. No encouragement should be given to Chinese Govt silver proposal. [State and Treasury.]

  1. General of the Army George C. Marshall, Secretary of State, January 1947–January 1949.
  2. United States Foreign Policy for a Post-War Recovery Program: Hearings, 80th Cong., 2nd sess. (Washington, Government Printing Office, 1948), pt. 2, p. 1569.
  3. Entitled Possible Use of Silver for Monetary Stabilization in China in Connection With the China Aid Program; for text, see Department of State, United States Relations With China (Washington, Government Printing Office, 1949), p. 987.
  4. Not printed.
  5. John W. Snyder, Secretary of the Treasury.
  6. Foreign Relations, 1947, vol. vii, p. 1182.
  7. Not printed.