FO371-24687 — Page 78

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4.1.

INDEXED

Page 78

Decypher.

No. 97.

IMMEDIATE.

SECRET.

H

17 JUL 194 TO

Green

LIMITED DISTRIBUTION,

The Governor (Hongkong).

15th July, 1940.

D.

4.55 p.m., 16th July, 1940.

R.

2.30 p.m., 16th July, 1940.

Your telegram No. 79.

Following from Rogers.

[Begins. ]

2.9

The answer seems lobe is that it is up to the Americans to take over the "baby" now from no -in other words, as we have suggested, the us goot might extend a currency

credit to China.

Audert 17/ F3452/230/10 Ang

See also

"F"

I confess that I have difficulty in understanding that British war effort might be affected in any important

I can measure by relatively small sum at issue. appreciate that His Majesty's Treasury may be faced with claims from other directions which have to be rejected on account of their cumulative weight. But I had not realised that on grounds of high policy cost would not be far outweighed by contribution which China is [? grp. omtd.] to the common cause with Great Britain by check to further aggression and disturbance in the Far East which is [grp. undec.] [? made to] whole war effort.

My estimate of cost involved may prove to be too large or yet too small. (Some abatement of future position will no doubt be noted when Chinese exporters to the Empire invoice solely in United States dollars and all importers contract in sterling). But whatever may be the position I cannot hide the fact that when implications of your programme are fully realised here reaction is likely to be that China has been singled out [grp. undec.] and has to face state of constant currency dis[grp. undec.] at a time when she can most ill afford extraneous disturbances.

Repeated to Shanghai No. 132.

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