893.51/7657a: Telegram
The Secretary of State to the Ambassador in China (Gauss)
Washington, December
9, 1942—midnight.
1209. For Adler from the Secretary of the Treasury. For your personal information.
- Part I. The Central Bank of China has instructed the Federal Reserve Bank of New York to invest $150 million of the $200 million being held by the Central Bank in special accounts with the Federal Reserve Bank of New York in the one year ⅞ of 1 percent certificates of indebtedness suggested to the Central Bank by the Treasury.
- Part II. Dr. Kung, through Mr. Hsi, has informed the Treasury that he desires the continuation of the 1937 arrangement on condition that China be permitted to purchase for earmarking $50 million of gold out of the $300 million still remaining to the credit of China on the books of the Treasury. Dr. Kung has indicated that he might agree to 30 or 40 million dollars of gold, if the Treasury so desires. The Treasury is now considering this proposal and would appreciate receiving immediately any comments you may wish to make on this [Page 558] matter so that these comments may be taken into consideration before any final decision is made. [Morgenthau.]
Hull