893.5151/7–2649: Telegram

The Ambassador in the United Kingdom (Douglas) to the Secretary of State

2954. Deptel 2536, July 21, re freezing Chinese foreign exchange balances. Dening,46 Foreign Office, re paragraph 2 of Deptel under reference, states Foreign Office has not been informed opinion Hong Kong [and] Shanghai bank manager and does not contemplate freezing [Page 803] Chinese foreign exchange assets at present time. Believes Shanghai British unduly panicky although easy to say this when 10,000 miles away. Will consult Treasury and inform Embassy.

Douglas
  1. Maberly E. Dening, British Assistant Under-Secretary of State for Foreign Affairs (Far East).