693.0031 Tibet/8–3148
Memorandum of Conversation, by the Assistant Chief of the Division of Chinese Affairs (Freeman)
| Participants: | Tsepon Shakabpa, Leader of the Tibetan Trade Mission |
| Rinshi Pangdatshang, Member of the Tibetan Trade Mission | |
| Mr. Ratna, Interpreter of the Tibetan Trade Mission | |
| Mr. Benninghoff, FE | |
| Mr. Freeman, CA |
The above-named three members of the Tibetan Trade Mission called this morning by appointment on Mr. Benninghoff. As on previous occasions, Mr. Shakabpa spoke for the Mission through the interpreter.
Mr. Shakabpa opened the conversation by expressing appreciation for the offer to sell 50,000 ounces of gold to Tibet for purposes of currency stabilization and requesting a temporary loan to Tibet of $2 million in order that the gold purchase might be arranged immediately. (The details of Mr. Shakabpa’s proposal are embodied in the attached letter to the Secretary dated August 31, 1948,21 which was handed to Mr. Benninghoff at the close of the conversation.) Mr. Shakabpa explained that the Government of Tibet had sufficient rupee exchange in banks in India which could serve as collateral for the loan. In reply to the pertinent question, Mr. Shakabpa stated that the amount of rupee exchange was in excess of the $2 million requested, computed at the official rate of exchange.
Mr. Shakabpa emphasized the temporary nature of the loan requested, and stated that it could in all probability be repaid shortly after the Mission’s return to Tibet. He said that, if the loan were granted, it would strengthen Tibet’s bargaining position in current discussions with India looking toward a revision of the “old treaty” between Tibet and British India, and he indicated that the commercial and financial aspects at issue might then be resolved in Tibet’s favor.
Mr. Shakabpa also brought up the question of the possibility of American businessmen, tourists, newspaper men, etc. and official American representatives visiting Tibet. He stated that his Mission was concerned with purely commercial and financial matters, but that he wished to report to his Government the views of the U. S. Government in this regard. He explained that the Mission had received many informal requests from various Americans for permission [Page 783] to visit Tibet and he indicated that the Mission heartily approved of the idea. (Both Mr. Benninghoff and myself received the impression, however, that such permission might be conditional upon the granting of the $2 million loan.)
Mr. Benninghoff replied that he felt that it would be advantageous to both Tibet and the U. S. if there were more interchange of businessmen, students, newspaper men, etc., but that under present conditions travel to Tibet by foreigners was apparently not permitted by the Tibetan Government. With regard to official American representatives, Mr. Benninghoff inquired of Mr. Shakabpa what the attitude of the Tibetan Government would be if the U. S. Government should request authorization to send an American Consul into Tibet. I explained that, if such a decision were perchance made, it would in no way constitute an alteration of our traditional recognition of China’s de jure sovereignty over Tibet. Mr. Shakabpa stated that he was not in a position to speak for his Government in this regard, but that he was of the opinion that such a request might be regarded with favor.
Mr. Benninghoff stated that the question of the $2 million loan would be discussed with the appropriate officers of the Government and that the Mission would be informed in the premises as soon as possible. Mr. Shakabpa stated that the Mission would return to New York on September 1 and requested that the Department’s reply be forwarded to the Mission in care of the Hotel Commodore, New York City.
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