893.51/7080: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received May 18—7:30 a.m.]
222. My 221, May 18, noon.68 I am advised that point 2 of Chiang Kai-shek’s message69 refers to the arrangement embodied in the letter of July 14, 1937, from Federal Reserve Bank of New York to the Central Bank of China for supplying United States dollar exchange. The suggestion is that if fresh funds can be provided for exchange it might better suit the American authorities to consider amending an arrangement made prior to the hostilities expressly for providing United States dollar exchange although of course considerable modifications would be necessary. Further if part of the United States dollars 20,000,000 credit could be used for exchange it might be preferred that the funds be applied in part payment of the indebtedness of United States dollars 19,000,000 still due to the Federal Reserve Bank of New York, thus freeing pledged gold pro tanto for exchange support.
- Not printed.↩
-
The text of Chiang Kai-shek’s message as transmitted by the Ambassador in China differed somewhat from that delivered by the Chinese Embassy (printed supra). It contained the three following points not included in the latter copy:
↩- “1. To extend to China all possible means of financial assistance.
- 2. To extend further commercial loan secured on additional wood-oil and/or tin or by utilizing the framework and procedure of the 1937 credit arrangement.
- 3. As an interim and emergency measure, to permit part of the recent US$20 million credit to be used in cash instead of for purchases, since our need of funds for exchange has become more vital than the purchase of part of the products desired while a substantial part of the exchange sold would be used naturally for purchases in the United States.”