102.1/8770d: Telegram

The Secretary of State to the Chargé in China (Atcheson)

967. From Secretary of Treasury for Adler.

Please inform Dr. Kung that:
The Treasury is requesting you to submit your resignation to the proper authorities (this, however, is subject to paragraph 4 below) since the 1941 Stabilization Agreement under which the Secretary of the Treasury was obligated to nominate the American member of the Stabilization Board has lapsed.
The Treasury intends to appoint you as Treasury representative in China.
You are instructed hereby to submit your resignation, as indicated above, as American representative on the Stabilization Board. However, the Treasury wishes you to stay on in Chungking as Treasury representative.
Treasury will also probably want you, before assuming your new duties, to go to India for a short period for the purpose of doing a report on the situation in connection with matters which are being discussed here at the present time relating to the silver market and the proposed sale of gold.
Do not submit your resignation if you have strong reasons why you feel that the above action would not be desirable but immediately cable the Treasury stating your strong reasons. [Morgenthau.]