893.51/7294a: Telegram
The Secretary of State to the Consul General at Hong Kong (Southard)
256. For Fox from Treasury. For your information and appropriate guidance. Following cable has today been sent to the [Page 723] American Consul, Shanghai: United States Government, in conjunction with British Government, is requesting all friendly foreign banks in China (including those covered by General License No. 59 under freezing orders) to give their full cooperation to the Stabilization Board of China. All banks named in General License No. 59 have been notified except Underwriters Bank for the Far East, Inc., and Moscow Narodny Bank, Ltd. Please advise these two banks of foregoing and endeavor to obtain assurances of their cooperation. Report results by cable.95
Following cable has today been sent to American High Commissioner, Manila: The United States Government, in conjunction with the British Government, is requesting banks in Far East (including those named in General License No. 59) to give their full cooperation to the Stabilization Board of China. Please take appropriate steps to inform all banks in the Philippines, including those licensed under General License 63, of the foregoing and endeavor to obtain assurances of their cooperation. Please report to me the names of any banks refusing or failing so to cooperate.
With both cablegrams there was quoted the following Treasury press release:
The Secretary of the Treasury today announced that the United States Government had requested banks in the Far East to give their full cooperation to the newly created Stabilization Board of China. The British Government is taking similar action. Included among the banks whose cooperation was asked were those named in General License No. 59 issued under the freezing orders.
This measure, the Secretary stated, was in harmony with previous measures taken by the American and British Treasuries in the field of monetary cooperation with China. Both the United States and Great Britain have previously entered into stabilization agreements with China whereby dollar and sterling exchange have been made available to the Stabilization Board of China. Such Board was established recently by China and consists of three Chinese, an American appointed by China on the recommendation of the Secretary of the Treasury, and a British national appointed on the recommendation of the British Treasury.
Through the State Department the Netherlands and Belgian Governments have been asked to have their banks in the Far East cooperate similarly. [Morgenthau.]
- In his telegram No. 1268, September 13, noon, the Consul General at Shanghai (Lockhart) reported to the Department that both banks “have now replied in writing pledging full cooperation with Stabilization Board.” (983.51/7301)↩