Whereas, The Governments of the Republic of China and of the Un-
ited States of America are engaged, together with other nations
and peoples of like mind, in a cooperative undertaking against
common enemies, to the end of laying the bases of a just and en-
during world peace securing order under law to themselves and a-
ll nations, and
Whereas, China and the United States are signatories to the Dec-
laration of United Nations of January 1, 1942, which declares t-
hat ‘Each government pledges itself to employ its full resourc-
es, military or economic, against those members of the Triparti-
te Pact and its adherents with which such government is at war',
and
Whereas, the Congress of the United States, in unanimously pass-
ing Public Law No. 442, approved February 7, 1942, has declared
that financial and economic aid to China will increase China's
ability to oppose the forces of aggression and that the defence
of China is of the greatest possible importance, and has author-
ized the Secretary of the Treasury of the United States, with t-
he approval of the President, to give financial aid to China, a-
nd
Whereas, such financial aid will enable China to strengthen gre-
atly its war efforts against the common enemies by helping China
to
(1) strengthen its currency, monetary, banking and economic sys-
tem;
(2) finance and promote increased production, acquisition and d-
istribution of necessary goods;
(3) retard the rise of prices, promote stability of economic re-
lationships, and otherwise check inflation;
(4) prevent hoarding of foods and other materials;
(5) improve means of transportation and communication;
(6) effect further social and economic measures which promote t-
he welfare of the Chinese people; and
(7) meet military needs other than those supplied under the Len-
d-Lease Act and take other appropriate measures in its war
effort.
In order to achieve these purposes, the undersigned, being duly
authorized by their respective Governments for that purpose, ha-
ve agreed as follows:
ARTICLE Ⅰ
The Secretary of the Treasury of the United States agrees to es-
tablish forthwith on the books of the United States Treasury a
credit in the name of the Government of the Republic of China in
the amount of 500,000,000 U.S. dollars. The Secretary of the Tr-
easury shall make transfers from this credit, in such amounts a-
nd at such times as the Government of the Republic of China sh-
all request, through the Minister of Finance, to an account or
accounts in the Federal Reserve Bank of New York in the name of
the Government of the Republic of China or any agencies designa-
ted by the Minister of Finance. Such transfers may be requested
by and such accounts at the Federal Reserve Bank of New York may
be drawn upon by the Government of the Republic of China either
directly or through such persons or agencies as the Minister of
Finance shall authorize.
ARTICLE Ⅱ
The final determination of the terms upon which this financial
aid is given, including the benefits to be rendered the United
States in return, is deferred by the two contracting parties un-
til the progress of events after the war makes clearer the final
terms and benefits which will be in the mutual interest of the
United States and China and will promote the establishment of l-
asting world peace and security. In determining the final terms
and benefits full cognizance shall be given to the desirability
of maintaining a healthy and stable economic and financial situ-
ation in China in the post-war period as well as during the war
and to the desirability of promoting mutually advantageous econ-
omic and financial relations between China and the United States
and the betterment of world-wide economic and financial relatio-
ns.
ARTICLE Ⅲ
This Agreement shall take effect as from this day's date.
Signed and sealed at Washington, District of Columbia, in dupli-
cate this 21st day of March, 1942.
On behalf of the Republic of China
(Signed) T. V. Soong
Minister for Foreign Affairs
On behalf of the United States of America
(Signed) Henry Morgenthau, Jr.
Secretary of the Treasury