893.5151/968: Telegram

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


2184. For Secretary [of] Treasury from Adler.

Returned Chungking November 13.
Saw Dr. Kung same day and reported on Treasury’s attitude on future of Board in accordance with Cairo instructions.94 He indicated it was perfectly agreeable to him that Board should be wound up in near future. I suggested it might be desirable for Treasury and Ministry to issue a joint statement at suitable moment couched in appropriate language in order to avoid Axis propaganda exploiting termination of agreement to which he readily agreed.
Reference your 1638, November 13. Board should be able to meet its obligations and settle outstanding business by December 31. In this connection it is liquidation of sterling obligations which require most time as our stabilization loan is still intact while sterling obligations under Sino-British agreements of 1939 and ’41 will have to be handled.

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  1. Mr. Morgenthau and Mr. White both were present at Cairo when Mr. Adler was there for consultation.