893.51/7661: Telegram
The Ambassador in China (Gauss) to the Secretary of State
Chungking, December
13, 1942—9 a.m.
[Received December 14—12:46 a.m.]
[Received December 14—12:46 a.m.]
1493. To the Secretary of the Treasury from Adler.
TF–79. Reference part II of your 1209, December 9.
- 1.
- In a conversation with me this morning Dr. Kung after some background discussion said he was willing to renew the 1937 arrangement unconditionally and to accept any decision you make as to the amount of gold China should purchase for the Treasury, whether it be 20, 30, 40 or 50 million dollars. The reason he had suggested 50 million was that as that was the amount purchased in 1937 on your advice he would like to retain the same sum on earmark primarily [Page 563] as a friendly gesture to you but also to have China’s gold holdings on the same level as in 1937. Throughout the conversation it was apparent that he was most anxious to cooperate fully with the Treasury.
- 2.
- Dr. Kung made no reference to possible need for importing gold in conjunction with the scheme for establishing free gold market here, a question which I understand is still pending.
- 3.
- China still has 10 million dollars unobligated gold in New York. She could therefore bring her gold holdings in New York up to 50 million by purchasing 40 million gold from the Treasury. This purchase could be made entirely independently of renewal of 1937 arrangement. [Adler.]
Gauss