893.51/7128
Memorandum of Conversation, by the Adviser on Political Relations (Hornbeck)
| Participants: | The Secretary of the Treasury. |
| Mr. T. V. Soong. | |
| Mr. Cochran and Mr. White of the Treasury Department. | |
| Mr. Hornbeck. |
Having had a conversation with Mr. T. V. Soong earlier this morning (see separate memorandum78), I called at eleven o’clock on the Secretary of the Treasury, in accordance with an arrangement made yesterday between Mr. Morgenthau and the Under Secretary of State, Mr. Welles. I found present with Mr. Morgenthau Messrs. Cochran and White.
Mr. Morgenthau opened the conversation with a statement that he I was at a loss to know what to do about the matter of possible financial assistance to China and what to say to Mr. T. V. Soong. He indicated that he still felt not in position to take steps toward giving support to Chinese currency. He said that he had entertained the thought that something might be done in the way of a three-cornered arrangement involving the United States, the Soviet Union, and China, but that suggestion had come from the Department of State that he hold off on that for the moment at least. He asked certain questions about the situation as regards the Burma Road, Indochina, exports of wolfram from China, et cetera, some of which questions were answered [Page 665] by Mr. Cochran, some by Mr. White, and some by me. He made mention of the new bill providing funds for the Export-Import Bank, which Messrs. Cochran and White said had been reported out from the Congressional Committees yesterday, and he made the remark that he did not see how the R. F. C.79 could, if and as soon as that bill is passed, dip into the funds which it will make available, by way of a deal with the Chinese, in as much as those funds are intended primarily for use in relation to Latin America.
After a few minutes of conversation in which nothing constructive was developed, Mr. Morgenthau asked his secretary whether Mr. T. V. Soong had arrived and asked that Mr. Soong be brought in. Mr. Morgenthau asked Mr. Soong whether he had met with “any success in his explorations”. Mr. Soong appeared somewhat nonplused at this question but after a moment’s reflection said that he had talked with a number of high officials, that the President had given him encouraging words, that he had found the Secretary of War80 and the Secretary of the Navy81 very much interested in the Far Eastern situation, that he had found Mr. Jesse Jones82 sympathetic, that he had had several conversations with Mr. White, and that he hoped that the Treasury Department was going to be helpful. Mr. Morgenthau said that he had been giving the problem a good deal of study, that he did not believe in arousing false hopes or expectations, and that he found the problem difficult; he then went over much the same ground that he had gone over with Messrs. Cochran and White and me a few minutes before, and he concluded by suggesting to Mr. Soong that it might be well for him to talk with Mr. Jones. He asked Mr. Soong some questions. Mr. Soong said that China was still able to export via both the Burma highway and French Indochina, in fact that no real difficulties in the way of exportation existed, and that China could send out wolfram in the amount of somewhere between 12,000 and 13,000 tons per annum. Mr. Morgenthau turned to me and asked whether I could offer any suggestions. I replied that in the light of what Mr. Morgenthau had said it would seem to me that some procedure via the Export-Import Bank offered the most in the way of a potentiality. Mr. Morgenthau asked Mr. Soong whether he had talked to Mr. Jones recently, within the last week. Mr. Soong replied that he had not. Mr. Morgenthau said that he himself was going away for a couple of weeks and would be glad to see Mr. Soong again after his return. Mr. Soong said that he would give thought to the question [Page 666] of calling on Mr. Jones and would look forward to talking with the Secretary of the Treasury after the latter’s return. He thanked Mr. Morgenthau for having received him and for having spoken frankly.