893.5151/970: Telegram
The Secretary of State to the Ambassador in China (Gauss)
Washington, December 11,
1943—7 p.m.
1784. From the Secretary of the Treasury for Adler. Please inform Dr. Kung of the following: (Your 2228 November 24 and 2235 November 25)
- 1.
- His discussing with Generalissimo and Cabinet the Treasury’s suggestion with regard to purchase of CN$400 million per month by U. S. Government to meet U. S. military and civilian governmental expenditures is appreciated by the Treasury. Treasury is sure that the Generalissimo and Dr. Kung will appreciate why U. S. Treasury feels that U. S. military and civilian governmental agencies should not continue to purchase Chinese national dollars at present rates of exchange.
- 2.
- Treasury feels that it could not justify paying more than 1 U. S. dollar for 100 Chinese national dollars or US$4 million for CN$400 million.
- 3.
- If Chinese Government is not willing to make the requested CN$400 million per month available in immediate future at cost of US$4 million, Treasury sees no available alternative to meet immediate situation except for all U. S. governmental agencies to use U. S. currency shipped to China to meet expenditures in China, until more satisfactory arrangement has been worked out with Chinese Government.
- 4.
- Before making this request the Treasury fully considered interests of China and feels that the best interests of China and common war effort will be served by the granting of price of CN$100 to US$1 for U. S. governmental expenditures. [Morgenthau.]
Hull