893.5151/976: Telegram

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

urgent

2417. To Secretary of Treasury from Adler. …

2.
I indicated that the price of United States dollars had become an outstanding issue for all United States Government agencies in China relations and that the working out of a satisfactory arrangement was advisable from point of view of Sino-American relations. Kung replied that “the Generalissimo had said no.” When I inquired again into the possibility of the sale of gold, Kung informed me that Chinese Government sales had been quite small, its policy being to buy back a substantial part of what it had sold to keep up price which is now around CN 13,000 per Chinese oz. selling in Chungking.
3.
Kung intimated that Generalissimo had discussed exchange rate with President in Cairo but did not inform me of content of discussion.

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Gauss