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

1801. Embassy’s 1624, September 2. We are informed by a reliable authoritative source that pending definitive action in regard to the Stabilization Board, the Board’s activities have deteriorated to practically nothing as the Board itself does not know what its status is and lacks any real power. According to this source, who is very close to the chairman, K. P. Chen will probably continue as chairman until the Board in its present form “is shelved and Chen is shelved with it.”