"Reference your telegram for Hornbeck and Johnson:
  The silver policy of the United States, particularly its effects on
the economy of China, has received and will continue to receive earnest
consideration by the highest officials of the American Government and
it is hoped that the procedure outlined in the text of the message from
the Federal Reserve Bank of New York, which message was on Decem-
ber 18 handed to the Chinese Minister here for transmission to the
Central Bank of China, may prove helpful. Season's Greetings."
                                                           HULL
893.515/376'2
The Secretary of the Treasury (Morgenthau) to the Secretary of State

                                 WASHINGTON, December 31, 1934.
  MY DEAR MR. HULL: In accordance with my conversation with you
over the telephone I am sending you herewith a copy of. the memoran-
dum which I submitted to the President this morning.45 I took this
matter up directly with the President as it refers only to the price of
silver.
  I am also enclosing a copy of the message which will be handed to
the Chinese Minister and which we will ask him to transmit at once
to the Central Bank of China.
  Sincerely yours,                           H. MORGENTHAU, JR.

                             [Enclosure]
                                [WASHINGTON,] December 31, 1934.
  The Federal Reserve Bank of New York as fiscal agent of the United
States requests the Chinese Legation in Washington to transmit the
following cablegram to the Central Bank of China.
  "As fiscal agent of the United States for the purchase of silver,
we
beg to advise you that the program with reference to such purchase
outlined in our cable to you of December 18, 1934 46 will, pursuant to
Clause C in our cable of ecember 18, be deemed terminated one week
after your receipt of the present communication.
  "We shall welcome an opportunity to discuss the whole matter with
the representative mentioned in Clause D in our previous cable.
                            Federal Reserve Bank of China [siC]"

893.515/378
             Memorandum by the Secretary of State

                                [WASHINGTON,] December 31,1934.
  The Minister of China called and stated that the one week's notice
that had been given him by the Treasury, to the effect that the recent

" Not printed; however, the message mentioned below and printed herewith
is President Roosevelt's revision of this memorandum.
48 For draft of cable, see p. 457.



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CHINA