893.51/7517: Telegram
The Secretary of State to the Ambassador in China (Gauss)
707. From the Secretary of the Treasury for Adler. Your 891, July 31, 10 a.m. from Currie informs us that Hall-Patch insists that Treasury recommendation of you is not in accordance with Sino-American Agreement and that you cannot function on the Board in that capacity and that Treasury recommendation is at variance with Dr. Kung’s appointment of you as acting member on July 17. It is not clear to us here why Hall-Patch is passing on any of these matters since they involve exclusively matters between China and the United States under the Sino-American Agreement of April 1, 1941 and the title to be accorded to the American representative on the Board. We are satisfied that our recommendation to Dr. Kung to designate you as “acting alternate member” and Dr. Kung’s acceptance of that recommendation, as indicated in telegram from Dr. Kung to Secretary of Treasury dated July 6 and sent through Gauss No. 796, make entirely legal your acting as the American representative on the Board and that there is no reason for Board meetings to be postponed or the Board’s business held up by reason of the title of your designation. Kindly bring the foregoing to the attention of Dr. Kung and Dr. Chen84 and if you are still having difficulties please inform us as to the nature thereof. [Morgenthau.]
- K.P. Chen, Stabilization Board chairman.↩