Office of the Historian

893.51/7652a: Telegram

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

Washington, November 23, 1942—6 p.m.

1137. For Adler from Secretary of the Treasury. Please transmit to Dr. Kung the following message from Secretary Morgenthau. The original letter is being sent by mail.

“Dear Dr. Kung: I wish to express my appreciation for the way in which China met its obligations under the 1937 arrangement, despite the many difficulties resulting from war and invasion.

Now that your Government has completely liquidated the debt owed by the Central Bank of China to the United States Stabilization Fund under the 1937 arrangement, the question arises as to whether you would prefer to have this arrangement continue in effect or whether you would prefer to have it terminated. Of course, if the Government of China does not request its renewal, the 1937 arrangement [Page 551] will automatically terminate on December 31, 1942. The Treasury would be glad to receive your views on this matter.

I trust this message finds you in the best of health.

Sincerely yours,

H. Morgenthau, Jr.,
Secretary of the Treasury”.

Hull