102.1/7–146: Telegram
The Acting Secretary of State to the Embassy in China
390. For Adler from the Secretary of the Treasury.31 We have been reviewing the question of releasing blocked Chinese assets. (Reurtels 312, Feb. 16 and 750, May 6, 1946.32) It is apparent that these assets cannot remain blocked indefinitely, particularly since FFC33 is committed to remove wartime controls administered by it as rapidly as possible. Discussion is still in preliminary stages and tentative views of Treasury which have not been discussed with other interested agencies are that these assets should be unblocked without requiring certification by the Chinese Govt. This tentative view is based primarily on the following considerations:
- (a)
- there is little evidence that the Japanese made any attempts to hide their assets here through cloaks in China;
- (b)
- it is doubtful that a certification procedure could be carried out efficiently and satisfactorily by the Chinese Govt; and
- (c)
- this action would parallel that taken by the British Govt last Jan 9 in removing Chinese assets from the operation of their trading with the enemy regulations.
Your immediate views would be appreciated. [Snyder.]