893.5151/982: Telegram

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

89. (From Adler to Secretary of the Treasury only). I hear from a most reliable source that:

Work is proceeding on only 4 of 7 bases China promised to construct and for which we were to pay. Three bases on which work is not proceeding are much more urgently needed than the others; in fact, delay in their construction will seriously impede war effort this theatre. Reason China is holding up work on them is that we have not committed ourselves to pay for them at official exchange rate.
In addition China undertook to build other bases for which she is to pay. No work being done on these bases.

Understand White House will be interested in this information which should not be communicated to other sources in view of its delicate character. [Adler.]