893.516/5–1349: Telegram
The Secretary of State to the Minister-Counselor of Embassy in China (Clark), at Canton
TelCan 197. Received Cantel 372, May 13, US Govt has undertaken no action leading to freezing Chinese Govt or private assets. As Deptel 167 May 13 indicates, US does not now contemplate freezing action.
Liu apparently refers to following occurrence: NY agency Bk of China has voluntarily agreed not to dispose of its security holdings in special account in American Commercial Bk except upon countersignature of rep of NY State Supt of Bks. Understood this arrangement, which is being kept secret, made by Supt in view his concern NY creditors of Bk might be protected. Foreign bks must be licensed to do business in NY, hence Supt’s concern.