893.24/1676: Telegram
The Secretary of State to the Ambassador in China (Gauss)
1820. Department does not regard as valid the objections raised in the fifth paragraph of Embassy’s 2095, November 5 to the utilization of open market funds for operating expenses. (Your 2377, December 11) Under the authorization granted for the sale of official drafts for United States currency, it is contemplated that the Embassy and consular offices will exchange this currency by the most advantageous means available to provide funds to cover their operating expenses payable in Chinese currency. As to the Embassy’s statement that exchange vouchers covering such transactions would be unobtainable to support the accounts, a certificate by the officer rendering the accounts describing the exchange facilities utilized to convert the currency, stating the rates obtained, and certifying that it was impracticable [Page 587] to obtain exchange vouchers, will be acceptable in lieu thereof. In this connection see Section V–45, Note 3 of the Foreign Service Regulations.
With respect to the question raised in the 6th paragraph of Embassy’s 2095 regarding the submission of certificates under Note 5, Section I–19, as requested in the 4th paragraph of the Department’s 1565, October 31, reference is made to the revision of this Note dated June, 1943, which contains provision for such certificates. The substance of this revised note is that certificates should be executed by persons receiving salaries and allowances in dollars to the effect that such dollars have not been converted into foreign currency at a rate more favorable than the prevailing official or current bank rate, except as fully explained in a separate report to the Department. If a joint certificate is utilized it should not be submitted with the accounts but should be prepared on a separate sheet and forwarded directly to the Department under cover of a despatch.