893.5151/12–2849
Memorandum of Telephone Conversation, by Mr. Robert N. Magill of the Office of Chinese Affairs
Mr. Cristelow telephoned with reference to a previous conversation he had had with Mr. Barnett regarding institution of controls by the Bank of England over sterling held by residents of China. He stated that he had just received the Bank of England’s orders making the controls effective as of December 23 and that he would be glad to send copies to us. Mr. Cristelow acknowledged that at the time he notified Mr. Barnett that controls would be imposed, they had in fact already been applied.
Mr. Cristelow continued that China and Formosa were being dealt with in separate categories under the control procedure, but that this did not mean any difference in actual treatment. In response to my inquiry, he stated that so far as he knew the controls applied only to sterling accounts in the United Kingdom and did not apply to Hong Kong dollar accounts.