893.102 Tientsin/321: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received June 28—12:50 p.m.]
906. In the London press of today it was intimated that the Japanese “semi-official” programme for the Anglo-Japanese negotiations on Tientsin includes (1) recognition by the Concession authorities and banks of the money of the Japanese controlled Federal Reserve Bank and refusal to accept or exchange the currency of the Chinese Government, and (2) handing over to the Federal Reserve Bank of the silver belonging to the Chinese Government now in the Concessions.
The French Financial Attaché informed a member of my staff, since the French Government was on the point of contributing to the China currency Stabilization Fund (my 2867, June 15), he had requested assurances from the British Treasury this morning that the negotiations about Tientsin would not result in a change in their attitude towards the Chinese currency situation. He stated that he had received the requisite assurances in unambiguous terms.
However, in the course of luncheon conversation a member of the Cabinet referred to the Chinese currency problem, about which he was not at all clear in his own mind, but volunteered to me that he felt that what they might do might embarrass them with the French and the Americans.
As indicated in the second paragraph of my 905, June 27, 7 p.m.,54 I think we should watch this aspect closely.