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• F3460/176/10
CUT FILE 26
LIMITED DISTRIBUTION.
Cypher telegram to the Marquess of Lothian (Washington).
Foreign Office, 13th July, 1940.
9.40 p.m.
No. 1518.
333333
IMPORTANT.
One result of our exchange control arrangements which are to come in force on 18th July will be that China will no longer be able to sell surplus sterling for United States dollars.
We naturally regret anything which adds to difficulties of China as regards maintenance of the Fapi, but the policy which on general lines we have adopted inevitably has this result. It has occurred to us that China may well ask United States Government for a dollar credit, and we should naturally welcome this.
The above is for your information in case questions should be raised by United States Administration or by Mr T. V. Soong, whom we understand to be in the United States.
Repeated to Shanghai No. 705, Chungking (by cable) No. 38
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