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special appeal for distinguished persons entering Hongkong,

such as Madame Chiang. I replied that the Ambassador

surely did not imagine that we would leave Madame Chiang

waiting under a pipul tree to get through the barrier

into Hongkong. Some discussion then ensued as to whether

pepul trees existed in China or not. At any rate, I

promised the Ambassador that a special effort would be

made to prevent unpleasant incidents arising with distin-

guished persons. The Ambassador also mentioned the case

of merchants who would have to go in and out, plying their

wares.

4. Altogether Dr. Quo took the decision pretty well,

and I am seeing the Governor of Hongkong this evening with

a view to describing some of the difficulties felt by the

Chinese.

5. I was then told that certain difficulties were arising

Central

about the setting up of a Federal Reserve Bank under the Government of Nanking. Dr. Quo was imperfectly informed

on this and asked me to get in touch with the Treasury. I should be grateful for any information I could be given on

this subject.

6.

The rest of our conversation was in general terms.

R&B

8th January, 1941.

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