Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-12-01
China 10 Get
$100,O00,o00
Loan From US.
Half Will Be Used
To Stabilize Currency;
To Be Paid in Metals
Ry John C. HENRY.

ItOooCfCit
important American financial aid
to China yesterday in the form Of
100000 in immediate general
purpose credits and another $780,
100000 in currency sterilization
credits to be allocated in the near
future.
The first part of this $l00, 000,-
900 loan will be made by the Ex-
port-Import Bank to the Chinese
government, to be guaranteed by
the Central Bank of China and to
be retired through deliveries in this
country of metals essential to the
American defense program.
The second portion will be ex-
tended by the Treasury Depart
ment. perhaps from the stabiliza-
ton fund, in manner to be de-
scribed by Secretary Morgenthau to
House and Senate banking commit
tees on Monday.
Extensive credits already have
been extended to the Chinese Ma
tionalist government, headed by
Chang Kai-shek, and are being re-
tired at the present time by de-
liveries of wood oil and tin. For
retirement of the first $4,000, 900
OF the credits announced yesterday,
the Chinese government is to de-
liver wolframite, antimony and tin.
other metals vital to the defense
program and for which the Metal
Reserve Co. Of the r. F. C. already
has contracted in the sum of $780,
000, 900.
Aid Short Of War.
Under study for some weeks past.
the decision announced yesterday
is part of this Governments con-
sidered policy to render all aid
short of war" to the nations al
ready engaged in fighting the Ger
manhattan Japanese totalitarian
bloc; augmentation Of pledge
which Mr.. Roosevelt made in a
speech to all the Americas from
Dayton, Ohio, October u.
mo combination of dictator coun-
tries of Europe and Asia" he
warned at that time, will stop the
help we are giving to almost the
last free people fighting to hold
them at bay"
Since reopening of the Burma
road, by which supplies can be
moved in to the beleaguered Chinese
Nationalist Armies, the Chang Kai.
shek government once more has ap.
peared well able to continue indefi.
mite resistance to Japanese aggres-
sion. Yesterdays action by this Gov.
eminent serves to reiterate Washing
ton recognition of the Chang Kali
shek regime at Chungking at q
time when Japanese sources are pro-
claiming the Marking puppet rule OF
Wang Ching-wei as 1.-THE national
government of China"
Hulrs Statement.
In further emphasis of this sig
niflcance, State Department spokes-
men yesterday recalled a statement
by Secretary Hull on last March
80 in which he referred to the
Chungking government as having
1.-The allegiance and support of the
great majority of the Chinese peo-
pie. The Government of the United
States of course continues to rec
ognize that government as the gov
eminent of China"
Establishment of the Wang
Ching-wei regime, Mr.. Hull said
at that time, has the appearance
of further step in a program of
one country by armed force to i'm
pose its will upon a neighboring
country and to block off large area
Of the world from normal political
and economic relationships with the
rest of the world"
A peace treaty" between the To-
kio and Marking governments was
signed tremendously yesterday.
The Loan Announcement.
The White House announcement
of yesterdays credit decisions fol-
lows:
THE discussions between the
American and the Chinese authori-
ties in the field of financial Coop
Grafton have progressed. There is
(See CHINESE loan page A-18)