893.5151/947: Telegram
The Chargé in China (Atcheson) to the Secretary of State
[Received July 23—12:15 p.m.]
1189. From Adler to Secretary Treasury only.
TF 139. Learn from reliable source that at a meeting of monetary experts called by Dr. Kung yesterday, Dr. Kung announced he had been informed by Chinese representatives at the Washington monetary discussions that a conference will not be held until the Allied Governments had agreed on the following:
- 1.
- That the existence of an international fund is vital and that the U.S. commitment to the fund should not exceed U.S. dollars two or three billion;
- 2.
- That every participating country should contribute to the fund;
- 3.
- That the initial rate of exchange of member countries be fixed;
- 4.
- That the voting power be based on the quota to a certain extent though not entirely.
Discussion in the meeting centered on point 3, the majority of those participating being strongly opposed on the ground that it would be impossible to arrive at a rational decision as to the Chinese exchange rate until some internal financial and economic stability had emerged. Dr. Kung, however, overrode all objections, insisting that China agree to all four points and arguing that it would be most inappropriate for China to hold up conference by refusing its assent to point 3.
[Page 1081]The meeting also agreed that Chinese delegation be instructed to recommend that member nations wholly or partially occupied by the enemy be required to pay only two-thirds and not three-quarters of 30 percent of their gold holdings to the fund.
During the course of meeting Dr. Kung indicated that Generalissimo strongly favors stringent foreign trade and foreign exchange control in the postwar period as well as now. [Adler.]