811.244/373

The Ambassador in China (Gauss) to the Vice Consul at Kweilin (Service)59

Sir: The receipt is acknowledged of your despatch No. 2045, January 20, 1944 [No. 103, February 1, 1944] in regard to efforts to curb Chinese corruption in the business relations between Chinese commercial organizations and the United States Army at Kweilin.

Your despatch under acknowledgment, a copy of which is going forward to the Department, has been read with interest, as have your previous despatches on this subject, and the Embassy believes that you are to be commended for the effective action you have taken in behalf of our military forces. The Embassy approves the attitude you have adopted, as indicated in the second paragraph of page three of your despatch, with regard to the request of the Special Delegate of the Ministry of Foreign Affairs that you address to him an official letter acknowledging that the Bank of China has not been involved in the case. It is believed that the Consulate should itself seek to avoid becoming officially and formally involved in the matter and that it would be sufficient, if Lieutenant Phelps’60 investigation supports Mr. Kwok’s contention in this respect, to forward to Mr. Kwok a statement from Lieutenant Phelps to that effect.

The Embassy is confident that you will continue to be mindful of the delicate nature of such problems and will continue to handle them with tact and understanding, preferably on the informal basis of lending your unofficial good offices to assist the American armed forces.

Very truly yours,

C. E. Gauss
  1. Copy transmitted to the Department by the Ambassador in his despatch No. 2147, February 11; received March 2.
  2. Lt. Paul C. Phelps, in charge of Purchasing Office, S. O. S.