893.51/7339
Memorandum by the Assistant Chief of the Division of Far Eastern Affairs (Mackay) to the Acting Chief of the Foreign Funds and Financial Division (Livesey)11
Mr. Livesey: Reference your memorandum, October 20,12 in which the suggestion is made that FE may care to comment on the question whether Mr. Fox, in addition to his position as American representative on the Stabilization Board of China, should accept a position as adviser to the Chinese Ministry of Finance.
Bearing in mind that under existing arrangements Mr. Fox is readily available to officials of the Chinese Ministry of Finance who may wish to obtain his advice; that formal acceptance by Mr. Fox of an appointment as adviser to the Ministry of Finance might tend to tie him more closely to that Ministry than is desirable (in view of the circumstance that he is in fact a representative of the United States Treasury Department); that it is not altogether improbable that one of the objectives of having Mr. Fox occupy the position of Financial Adviser is to interfere with his independence in making decisions and also possibly to prevent direct access to General Chiang Kai-shek (which is now possible); and that it would appear inadvisable for Mr. Fox or any individual in effect to serve simultaneously as a representative of the United States Treasury Department and the Chinese Ministry of Finance, FE suggests that FF13 may care to inform the Treasury Department to the effect that in view of the considerations set forth above it would not, under existing conditions, seem desirable that Mr. Fox accept an appointment as adviser to the Chinese Ministry of Finance, and that the matter should not, prior to decision in regard thereto, be referred to Mr. Fox for his comments. [Page 737] The further suggestion is offered that the Treasury Department, in making reply to the Chinese Ambassador, state merely that, following careful consideration of the matter, it would appear that existing arrangements cover the situation adequately in as much as Mr. Fox is not only readily available to General Chiang Kai-shek, but also to officials of the Ministry of Finance who may wish to obtain his advice.
Note: This subject has been discussed with Dr. Currie who is in agreement with the view that Mr. Fox should not accept an appointment as adviser to the Chinese Ministry of Finance.