893.506/47: Airgram
The Chargé in China (Atcheson) to the Secretary of State
[Received August 20—5 p.m.]
A–21. Department’s telegram no. 889, July 12, 5 p.m.
Responsible official Finance Ministry states insurance project still vague. Proposal jointly drawn up by Office of Four Government Banks and Central Trust is for company with CN $60 million capital to take over insurance department of Central Trust and possibly other insurance companies in which Government has an interest. Proposed company would handle war risk insurance and might be given monopoly of reinsurance on Government property but would not handle reinsurance on private property. Capital would be subscribed by Central Trust and Government banks with possibly some national treasury participation. American participation not suggested [Page 439] and seems most unlikely. Impossible to say yet whether project will materialize or in what form.
Officers of local insurance companies suspect project is one for monopoly of all reinsurance, though they have no information as to details.
Project was reported in May political report,49 economic section, sub-section 1–b–4, 2d paragraph. Department will be kept informed of developments.
- Despatch No. 1255, June 12, not printed.↩