893.5151/7–149
The Secretary of State to Mr. Andrew McGray, Assistant Vice President of the Bank of the Manhattan Company, New York
My Dear Mr. McGray: The receipt is acknowledged of your letter date July 1, 194947 containing an inquiry as to whether the United [Page 804] States Government has recognized the Shanghai Military Control Commission, the People’s Liberation Army East China Command, or the East China Financial Affairs Administration as the de facto or de jure government in Shanghai, China. It is inferred that one or more of the above-mentioned authorities may have asserted rights to assets held in the name of an agency of the National Government of the Republic of China.
The answer to your specific question is quite definite. The United States Government has not extended any manner of recognition to any political entity in China other than the National Government of the Republic of China with its capital at Canton, China.
Under present conditions prevailing in China, American banks, in deciding upon a specific course of action relative to duplicate claims to funds deposited with them to the credit of Chinese entities, naturally will have to rely upon established business and banking practices as consistent with applicable legal statutes and the advice of legal counsel.
For your information the United States Government has no present plans for the freezing or blocking of any category of Chinese assets in the United States. The Department of State would however be willing to consider requests by the National Government of the Republic of China for the certification (under Section 25(b) of the Federal Reserve Act, as amended) of official Chinese assets in the United States.
It is trusted that the preceding provides the clarification requested in your letter of July 1, 1949.
Sincerely yours,
For the Secretary of State:
Chief Division of Financial Affairs
- Not printed.↩