Foreign Relations of the United States Diplomatic Papers, 1936, The Far East, Volume IV

893.48/1062: Telegram

The Ambassador in China (Johnson) to the Secretary of State

Shanghai, March 6, 1936—1 p.m.
[Received March 6—4:33 a.m.]

139. Your 18, March 4, 7 p.m., to Nanking.

1. According to press reports in connection with Chen’s departure on Monday²³ on a tour of inspection of the United States and Europe he has been appointed High Adviser to Ministry of Finance.

2. I communicated orally Department’s message to Kung yesterday at Nanking. I inferred from the way he received the message that he was disappointed as he inquired casually in the course of the conversation as to whether Treasury Department or State Department was responsible for deciding question of loan. I replied that ultimate responsibility would lie with the President in considering financial policies of the Government.

3. Gauss tells me that he has learned in confidence from Hunt that K. P. Chen received advice from the Treasury Department that he should come prepared not only to discuss monetary matters but that he should also familiarize himself with the Flood Relief Loan and cotton and wheat credit. This may explain Kung’s attitude.

Johnson

23. The Consul General at Shanghai in his telegram No. 156, March 14, 10 a.m., reported that K. P. Chen and party had sailed the night before on the S. S. President Pierce, accompanied by P. W. Kuo, Director of Bureau of Foreign Trade of the Ministry of Industries; Y. G. Koo, submanager of the Chung Foo Union Bank and Counselor of the Executive Yuan; and Mrs. Koo (893.48/1066).