The Secretary of State to the Ambassador in China (Gauss)
88. 1. The message in numbered paragraph 2, approved by the White House, should have been dispatched in advance of Department’s 79, January 16, 6 p.m., and should in the record precede [Page 842]that telegram, and is being sent you now for clarification, guidance, and to keep the record complete.
2. The Treasury Department having now signified to the War Department and to us that it no longer desires that the War Department withhold action on a financial agreement with the Chinese Government, we have now reached an understanding with the War Department on the basis of which this Department will expect within 2 or 3 days to issue you instructions concurrently with action by the War Department in instructing General Stilwell. Those instructions relate to the problem presented by the difficulties mentioned in Adler’s message to the Secretary of the Treasury communicated in your number 87  January 13, 2 p.m. In this connection please consider also our telegram number 61, January 12, midnight,36 reporting a conversation which officers of the Department had with the Chinese Ambassador37 on January 6.