893.515/1404
The Department of State to the British Embassy
Aide-Mémoire
Reference is made to the British Embassy’s aide-mémoire of July 12, 1939,82 in regard to the problem of currency in north China.
The Government of the United States continues to be seriously concerned with the fundamental issues presented by the present situation in the Far East and its attitude toward those issues remains unchanged.
Having in mind the fact that the discussions which are shortly to take place at Tokyo between the British and Japanese authorities grew out of and relate to the question of administrative control of the British Concession at Tientsin, the Government of the United States does not feel that it is in position at this time to give an undertaking to instruct its representative at Tokyo to participate in the discussions in regard to the subject of currency matters, if and when that subject is raised. The question is, however, as indicated in the British Embassy’s aide-mémoire, one of concern to the Government of the United States. This Government understands that the British Ambassador at Tokyo has informed the American Embassy there that he will keep the Embassy informed in regard to any developments which may arise on that subject. On the basis of such information this Government would expect to study the matter with a view to offering such suggestions as it might deem to be helpful.
Aside from the question of the proposed discussions in regard to the British Concession at Tientsin, the Government of the United States has received a telegraphic communication from the American Chamber of Commerce at Tientsin82 referring to the recently promulgated regulations of the provisional regime at Peiping to the effect that as from July 17 all export commodities in north China will be subject to control. The Chamber indicated that no export business could be done without compliance with these regulations. The Chamber stated that it is asking that American banks cooperate in the execution of the regulations to the extent of facilitating the linking by American firms of exports and imports. The Chamber is convinced that if this is not done American business must suffer curtailment if not cessation.
Reference is made in this connection to the British Embassy’s aide-mémoire of March 8, 1939,82 and to the Department’s aide-mémoire in reply of March 13, 1939, in regard to the maintenance by the various [Page 429] foreign banks in north. China, especially the American, British, and French banks, of a common front in reference to trade and exchange restrictions in that area. The Government of the United States would appreciate the receipt of an expression of the views of the British Government in regard to the effect which the imposition of the new export regulations, effective as from July 17, is likely to have upon British and other foreign banks in north China and in regard to the attitude which the British Government may feel it advisable for British banks to adopt in the light of this new development.