893.24/1681: Telegram

The Secretary of State to the Ambassador in China (Gauss)

35. At a conference of representatives of interested agencies held on January 6, Treasury representative strongly urged that conclusion of reciprocal aid agreement should be delayed pending Chinese reaction to the President’s reply concerning the proposed loan. Representatives of War Department concurred. (Department’s no. 7, January 1, 9 p.m.)

It is therefore not believed advisable that you take any action for the time being in regard to the reciprocal aid agreement. If this matter is mentioned by the Chinese it is suggested you state simply that you have received no instructions.