between the two banks. Chen and Chang shared a vision of using private capital to develop and modernize the country. Liu Hongsheng, Insurance and The China Development Bank In 1927 K. P. Chen teamed up with Liu Hongsheng (1888–1956) to establish an insurance company. Three years later Liu Hongsheng mortgaged his new eight-story group office building to K. P. Chen to raise the capital for launching The China Development Bank. China's Wartime Finance Advisor K. P. Chen was head of China's Currency Stabilization Board. During World War II, the Shanghai Commercial and Savings Bank was devoted to consolidating the economy. In order to solve the financial problems, K. P. Chen represented the government of the Republic of China and negotiated with U.S.A. for loans. Some agreements were made: 1936: US-China Gold-Silver Agreement 1938: $25,000,000 Export-Import Bank loan 1939: Tung Oil Loan Agreement 1940: Tien Tin Loan Agreement In 1938 when the Chinese Ambassador Wellington Koo called on U. S. Secretary of the Treasury Henry Morgenthau to seek financial aid, the U. S. Secretary told him it might be advisable for the Chinese Government to send K. P. Chen (whom Morgenthau had negotiated with in the past) to America to enquire after credit for the purchase of flour and grain goods. In 1939 Finance Minister H.H. Kung, through K. P. Chen, endeavored to obtain assistance from the American Commercial Credit for the purchase of four airplanes, badly needed by the China National Aviation Corporation. K. P. Chen also participated in concluding a contract at Detroit to purchase 1,000 trucks from General Motors and Chrysler for the Chinese government. Reputation was important to him and he always made sure he kept his promises and by so doing, demonstrated integrity and ensured that China met its commitments. Time magazine on Monday, Apr. 6, 1942 reported that "Shy, determined Chinese financier K.P. Chen stuck a feather in his cap last week. From Chungking he wired Manhattan's Universal Trading Corp. to pay the final installment on a $22,000,000 Export-Import Bank loan smack on the tung-oil barrel head—nearly two years before the last installment on the loan was due." This showed U.S. Treasury officials that China could do business even when Japan controlled its coast. When he sought to borrow money from Washington in 1938, democracy was not considered good security but tung oil, essential in high-grade paints and varnishes, was. To make this work he