893.5151/4–2049: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received April 20—5:30 a. m.]
797. Minister of Education called with additional message from Finance Minister who is thoroughly discouraged over chaotic financial conditions Nationalist territory and trying resign. Han Li-wu did not renew Liu’s requests for immediate financial assistance but did ask what US attitude would be should Nationalist forces put up spirited defense Yangtse, prevent Communists crossing and thereby recapture popular support generally for continued resistance Communists’ [Page 764] southward advance. He asked if under these circumstances there would be possibility of American financial assistance to stabilize local currency or substantial silver loan for payment troops defending Nationalist territory. I replied along lines reported in mytel 701 [7091, to Department April 6, repeated Canton 223, Shanghai 336, Taipei 33, pointing out that considerable treasure of gold, silver and foreign currency did exist and that it was internal Chinese problem for present government to obtain control of all of it.
Sent Department, repeated Shanghai 398, OffEmb Canton 267. Canton please pass Taipei for Merchant.