The Chargé in China, (Atcheson) to the Secretary of State
[Received July 20—1:20 p.m.]
1211. State Department’s 882, July 9, part I. In accordance with your suggestion, [I] took the opportunity during a call on Dr. Kung on the 15th to have an informal discussion with him to make sure that he fully understands the Treasury position with respect to revision of 1941 Agreement. He gave the impression—I think deliberately—that China was not particularly anxious to have a stabilization loan; presumably this is largely jockeying for bargaining position. At the same time he intimated that China would ask for certain specific changes in 1941 Agreement without indicating what they would be.