Foreign Relations of the United States, 1949, The Far East: China, Volume IX

893.516/5–1749: Telegram

The Minister-Counselor of Embassy in China (Clark) to the Secretary of State

Canton, May 17, 1949—5 p. m.
[Received May 17—10:17 a. m.]

Cantel 398. Central Bank today in connection financial problems otherwise reported⁸¹ discussed with us proposed monetary reform plan predicated on US dollars 100,000,000 loan to Chinese Govt for silver purchases. (See Cantel 372 [May 13], repeated Nanking 279, Shanghai 234.)

We informed Central Bank that according Washington instructions US Govt has no legal authority negotiate loan that nature.

Recent decree Legislative Yuan requests Soong and Kung families contribute US dollars 1,000,000,000 to national cause regarded by financial officials as purely wishful thinking.

Sent Dept; repeated Nanking 294, Shanghai 248.

Clark

81. Telegram Cantel No. 399, May 17, p. 778.