893.516/619: Telegram
The Secretary of State to the Ambassador in China (Johnson)
113. Shanghai’s 486, June 9, 7 p.m.53 Please approach appropriate officials of the Chinese Government at such time as may appear opportune and say orally and informally that in view of the Chinese Government’s previously expressed desire that American bankers in China cooperate in policies desired by the Chinese Government, the American Government desires to ask that the utmost feasible effort be made to facilitate that cooperation. You may add that the manner in which the new exchange policy was put into effect by the Stabilization Committee created an unfortunate impression not only upon American but also upon other foreign banks which have been endeavoring to cooperate with the exchange control; that foreign banks learned of the new exchange policy only when one of them applied to the control authorities and was told that no exchange was being sold. Say in conclusion that American bankers in China do not quarrel with the decision for a change of exchange policy by the control authorities but that they feel that the procedure followed in the instance under reference was not as considerate as might warrantedly have been expected.
For your confidential information the Department is instructing the Embassy in London to express views similar to the foregoing to appropriate officials of the British Foreign Office and in addition, in connection with the general question of cooperation among foreign banks in China, to point out two other instances (in connection with north China trade and exchange control measures early in March, and the Huahsing Bank in Shanghai on May 1) in which British banks have acted in a manner which American banks have felt did not conform with a spirit of cooperation.
Repeated to Shanghai and Peiping.
- Not printed.↩