2.
periodical economic adjustment which your proposals .on, that account entail. These dangers would be in-
creased cause for concern but being superimposed upon extreme difficulties on coming importing season, are likely to face China with a most critical situation.
{
4. I therefore view your proposals with great apprehension. Nor can I hide from you my fear that when their implications are fully realised by Chinese, there reaction will be that your proposals are designed at least as much, if not more to meet your requirements with regard to China's free sterling as to provide quick help in response to Chiang Kai-shek's appeal, and that contribution to your problems which they are [?intended] to make by agreeing to condition on which your offer of assistance depends will out weigh help that they will be receiving from Great Britain.
5
Please see my immediately following telegram.
Repeated to Chungking telegram No. 191, Washington, Shanghai telegram No. 35 Saving, Tokyo telegram No. 6 Saving.
[Notes by Communications Department: (1) Received very corrupt.
that no changes
ин
(2) Copies sent to Mr. Waley Treasury].
I was originally informed by room 46
for amendment's unust have been made afterthe first te
mmy5
possible. These
Sie J. Brehan.
At
S.4.26/12
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