893.515/1162: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received July 21—4:52 a.m.]
160. 1. Vernacular newspapers this morning feature a Domei news despatch from Shanghai dated July 20 reporting the conclusion of an agreement allegedly negotiated in the United States by Chen, Director of the Bank of China, providing for purchase of Chinese silver by the United States; American assistance in the unification of Chinese currency and revenues, and assistance in tariff revision and control of foreign trade; purchase by China of American railway materials, [Page 496] automobiles, airplanes, et cetera; guarantees by the American Government to syndicates selling to China; a pledge of the American Government to refrain from selling arms to local regimes opposed to Nanking; and special licenses to be issued by the Treasury for shipments to China under the agreement.
2. The newspapers refer to the above as an American credit to China to finance purchase of munitions and give the alleged attitude of the Foreign Office as being opposed to economic assistance to China by any of the powers and as being inclined to inquire of the Nanking Government concerning details of the alleged agreement.
To Peiping by mail.