Office of the Historian

893.5151/900: Telegram

The Secretary of State to the Ambassador in China (Gauss)

Washington, August 5, 1942—5 p.m.

700. For Adler from Secretary of the Treasury. Mr. Currie in cable dated July 31, 194283 has informed me that he has indicated informally to Dr. Kung the growing resentment of United States diplomatic, military and charitable organizations over the declining purchasing power of the U. S. dollar in China. Mr. Currie says that he has raised the question of leaving the official rate as is but giving special rates for special purposes.

Please send all information available regarding the following matters: (a) What rate of exchange in your opinion would approximate purchasing power of the U. S. dollar in China to that of one year or two years ago; (b) Are there significant differences between the purchasing power of the U. S. dollar in Chungking and its purchasing power in other areas in Free China where Americans reside; and (c) What, if anything, is being considered to meet the situation outlined by Mr. Currie.

We also would like to have your views on Mr. Currie’s proposal and as to whether you feel this matter should be raised with the Chinese Government at this time. [Morgenthau.]

Hull
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