893.5151/917a: Telegram

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

487. Reference Embassy’s 527, April 11, 9 a.m. in regard to proposed exchange subsidy to diplomatic missions.

[Page 533]
With reference to the rate of the proposed exchange subsidy please confirm the Department’s understanding that under the proposed arrangement CN$30 would be received for one dollar United States currency.
You are also requested to ascertain, merely as a matter of information, whether it is contemplated that such an exchange subsidy would be extended to foreign governmental agencies other than diplomatic missions and whether foreign armed forces in China would also be included in such an arrangement.
The Department is not yet in a position to give the Embassy definite instructions regarding reciprocal lend-lease but every effort is being made to reach an agreement as rapidly as possible with Lend-Lease and other agencies of the Government in regard to the fiscal and technical problems involved in such an agreement. Until full understanding is reached here it is not believed advisable that you indicate to the Chinese Government that such an agreement has been drafted. However, the Department believes it would be helpful for you, without linking the matter with the question of exchange, to intimate to the Acting Foreign Minister that it is your understanding that both the Chinese and we have been giving consideration to the mutual benefits, particularly in the prosecution of the war, which would result from the extension of reciprocal aid and to note and report his reaction.