The Secretary of State to the Ambassador in Japan ( Grew )
117. Department’s 113, March 31, 7 p.m. On April 1 the French Ambassador called at the Department in regard to the question of eventual establishment of exchange control in north China. He referred to certain proposed measures consisting of the recognition by the foreign banks at Peiping and at Tientsin of the monetary system in north China and cooperation on their part with the bank of issue set up by the provisional government. He stated that the French Government was of the opinion that cooperation with the Japanese authorities upon the above-indicated basis should be arranged locally and upon the sole responsibility of the interested banks.
The Department in reply has informed the French Ambassador of the general purport of its telegram under reference and that the Department agrees that any relation which foreign banks may have with the new authorities in north China must be solely upon the responsibility of those banks. The Department has also informed the French Ambassador that you will keep in touch with your French colleague in the matter and that in the light of your 220, April 2, 8 p.m., the Department is studying the question of authorizing you to make an oral approach to the Japanese Government in regard to the discriminatory effect of the plans of the authorities in north China for the control of exchange.