Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume V

893.51/7383

The Chinese Ambassador (Hu Shih) to the Secretary of State ²³

Washington, November 1, 1941.

Sir: I have the honor to refer to the Agreement dated as of April 1, 1941, entered into on April 25, 1941, between the National Government of the Republic of China, The Central Bank of China and the Secretary of the Treasury of the United States and extended by supplemental agreement dated June 30, 1941, with reference to the establishment by China of a Stabilization Fund and the acquisition by such Stabilization Fund of United States dollars as a result of the purchase by the Secretary of the Treasury of Chinese yuan, and to my communication to you of April 25, 1941²⁴ relative to such Agreement.

I have now received and have the honor to transmit to you herewith the following documents:²⁵

1. Certified copy of Decree No. 4285 of the Ministry of Finance of the National Government of the Republic of China promulgated on August 12, 1941, establishing the Stabilization Board of China, as contemplated by said Agreement dated as of April 1, 1941, with power and authority to manage and control the United States Dollar-Chinese Yuan Stabilization Fund of China which is also created and established by virtue of said Decree No. 4285, and an official certified translation of such Decree into the English language.

2. Certified copy of the minutes of the first regular meeting of the Stabilization Board of China established pursuant to said Decree, which meeting was duly convened and held on August 13, 1941, the minutes of the meetings of said Board being duly and regularly recorded in the English language, which minutes contain a resolution authorizing the members of the Board to act and give instructions on behalf of the Board and with respect to the Fund and the assets and accounts thereof by writings signed by two signatories as more particularly specified in said resolution.

3. Letter dated August 14, 1941 addressed to The Secretary, The Federal Reserve Bank of New York, signed by the Chairman of the Board of the Stabilization Fund of China, containing a resolution relative to the authority of the members of the Board and their alternates to act and give written instructions on behalf of the Board and with respect to the Fund and the assets and accounts thereof and transmitting autographed specimen signatures in triplicate of the members of the Board and of the alternate of one of such members, each duly certified by Mr. Chao-ting Chi, General Secretary of the Board.

4. Certified copy of an Agreement dated August 14, 1941 between The Central Bank of China, the Bank of China, the Bank of Communications and the Farmers Bank of China of the one part, and the Government of the republic of China of the other part, relative to the $20,000,000 contributed by those banks to the United States Dollar–Chinese Yuan Stabilization Fund of China.

In connection with the enclosed documents, I have the honor officially to advise you on behalf of the Chinese Government as follows:

(a) That on August 12, 1941, Dr. H. H. Kung, Minister of Finance of the National Government of the Republic of China, duly promulgated Decree No. 4285, dated August 12, 1941, pursuant to authority duly and regularly granted by the Executive Yuan, the appropriate governmental agency authorized to grant such authority, a true and correct copy and an official translation of which decree are enclosed herewith.

(b) That Dr. H. H. Kung, Minister of Finance of my Government, whose signature is subscribed to the enclosed copy of such Decree, was duly and legally authorized and empowered to issue such Decree, and that the seal affixed thereto, and to the English translation thereof, is the official seal of the Ministry of Finance.

(c) That such Decree is the valid and binding act of the National Government of the Republic of China and the valid and binding law of China.

(d) That said Stabilization Board of China is an agency and instrumentality of the Chinese Government with full power and authority under the laws of China, and in accordance with the enclosed Decree No. 4285, dated August 12, 1941, to carry out and perform all of the terms and provisions of the Agreement dated as of April 1, 1941, as extended by supplemental agreement dated June 30, 1941, which Agreement as so extended represents the valid and binding obligation of the National Government of the Republic of China and The Central Bank of China.

(e) That the National Government of the Republic of China has duly and legally appointed as members of the Stabilization Board of China the following members:

• Mr. K. P. Chen
• Mr. Tsuyee Pei
• Mr. Hsi Te-mou
• Mr. A. Manuel Fox
• Mr. E. L. Hall-Patch;

that Mr. K. P. Chen has been duly and legally designated as Chairman of such Stabilization Board of China, and that the following members of the Board have duly and legally appointed as their respective alternates the following: Mr. Hsi Te-mou has appointed Mr. K. K. Kwok, and Mr. A. Manuel Fox has appointed Mr. William H. Taylor.

(f) That Mr. K. P. Chen and Mr. Chao-ting Chi, Chairman and General Secretary, respectively, of the Stabilization Board of China, whose genuine signatures are subscribed to the enclosed copies of minutes of the first regular meeting of the Stabilization Board of China, the letter dated August 14, 1941 addressed to The Secretary, The Federal Reserve Bank of New York, and the autographed specimen signatures of the members of the Stabilization Board of China and of the alternate of one of such members transmitted with such letter, are duly authorized and empowered to sign and certify the same.

(g) That such Agreement dated August 14, 1941 between The Central Bank of China, the Bank of China, the Bank of Communications and the Farmers Bank of China of the one part, and the Government of the Republic of China of the other part, relative to the $20,000,000 contributed by those banks to the United States Dollar–Chinese Yuan Stabilization Fund of China, is the valid and binding agreement of such banks which are agencies and instrumentalities of the Chinese Government with full power and authority under the laws of China to carry out and perform all of the terms and provisions of said Agreement.

You will note that the autographed specimen signatures transmitted with the enclosed letter dated August 14, 1941 addressed to The Secretary, The Federal Reserve Bank of New York, have been duly authenticated by me.

I beg to request that you kindly authenticate my signature on the enclosed schedule of autographed specimen signatures of the members of the Stabilization Board of China and of the alternate of one of such members and furnish copies of this letter and its enclosures to the Secretary of the Treasury and the Federal Reserve Bank of New York as fiscal agent of the United States for their information.

Accept [etc.]

Hu Shih

23. Notation by the Acting Chief of the Foreign Funds and Financial Division (Livesey) in a memorandum dated December 17: “Mr. Victor Kwonglee Kwong, Attaché to the Chinese Embassy, brought in the Chinese Ambassador’s note dated November 1, 1941 and the various documents mentioned therein which he said had been requested by the Treasury Department for its records concerning the China Stabilization Board. The Treasury had accepted telegraphic notification of the acts covered by the documents but had requested that the formal documents be supplied as soon as possible. The Ambassador’s note was given the date November 1 as an appropriate date in the circumstances. F. L.”
24. Not found in Department files, but see note dated April 18, p. 630.
25. Enclosures not printed; the documents were transmitted to the Treasury Department on December 20.