893.51/6924

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

No. 2867

Sir: I have the honor to refer to despatch No. 2352 of March 27, 1939,48 and previous correspondence regarding the China Currency Stabilization Fund and to report that, according to Mr. Hall-Patch of the British Treasury, the French Embassy notified the British Government on June 12 that the French Government was prepared to enter the China Currency Stabilization Fund with a contribution of 200 million francs. The French Government has in turn asked [Page 675] for representation on the Management Committee and other participating privileges. In this connection Mr. Hall-Patch stated that the French could not believe that there was not some hidden benefit which was accruing to Great Britain through its contribution to the Stabilization Fund and that would not, therefore, automatically be obtained by them. He added that the British Treasury had had some difficulty in persuading the French Embassy that the purpose of the China Currency Stabilization Fund was as stated publicly and that the only other benefit that might accrue would result from the successful operation of this instrument.

Respectfully yours,

For the Ambassador:
Herschel V. Johnson

Counselor of Embassy
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