893.51/7668a: Telegram

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

112. For Adler from the Secretary of the Treasury.

1.
In connection with current discussions in Treasury regarding Chinese exchange rate and payment of American soldiers in China, [Page 404] the Treasury would appreciate your personal and confidential views on the following questions:
(a)
What is the present attitude of the Chinese Government towards the continued black market sales of U. S. currency notes by members of the United States Air Force in China?
(b)
Does the Chinese Ministry of Finance still prefer to permit the continuation of these black market sales rather than to discuss the possibilities of a reduction of the exchange rate or the instituting of special rates for payment of United States soldiers in China?
(c)
Do you see serious objections to Treasury’s not doing anything about the present situation until such time as the Chinese Government chooses to raise the matter with the United States Government?
2.
Please consider the above matter as strictly confidential. [Morgenthau.]
Hull