893.516/654
Memorandum of Conversation, by Mr. Joseph M. Jones of the Division of Far Eastern Affairs
| Participants: | Mr. Pinsent, Financial Counselor of the British Embassy |
| Mr. Adams75 | |
| Mr. Jones |
Mr. Pinsent stated that he had on his own initiative called on Mr. Hamilton a few weeks ago to discuss the attitude which foreign banks should take toward Japanese sponsored financial measures in central China, but that he had now received an instruction from his Government to inform the Department that the British Government has decided to make no further representations to the Japanese Government in regard to their financial manipulations in China, but that it has decided to approach the Governments of Belgium, France, the Netherlands, and the United States, informing them that British banks have decided upon a policy of “passive obstruction” to the Japanese sponsored financial scheme in central China and expressing the hope that other foreign banks in China will cooperate in maintaining a similar attitude. Mr. Pinsent read the text of a communication handed by the Japanese Foreign Minister to Ambassador Craigie in Tokyo in regard to the organization and purposes of the new bank, which appeared to be similar to, if not identical with, the statement given to Consul General Gauss by the Japanese Consul General at Shanghai.
Mr. Pinsent was told that the Department had informed officials of American banks in China and their home offices in New York that in its opinion the establishment of the Huahsing bank and the issuance of a new currency in central China appear to be the initial steps in the creation of a general system of trade and exchange control in central China, and had expressed the hope that American banks would see their way clear to refraining from any action which might assist the new bank and its currency and to maintaining with other foreign banks a common front of resistance.
- Walter A. Adams, of the Division of Far Eastern Affairs.↩