893.515/1545d Suppl.: Telegram

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

222. Department’s 151, January 30, 1943. For Adler from Secretary of Treasury.

Dr. Kung has indicated through Mr. Hsi reluctance to use part of the $200 million set aside in special accounts with the Federal Reserve to meet payments for banknotes, etc. because $200 million set aside by governmental decree and this action made public. Nevertheless, Dr. Kung expressed willingness to use uninvested part of $200 million as Treasury suggested.
Treasury has asked Mr. Hsi to inform Dr. Kung that, in light of further considerations put forth by Dr. Kung, Treasury, as requested, is willing to transfer $20 million more out of the unearmarked portion of the $500 million. [Morgenthau.]