893.5151/985: Telegram

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

188. Have sent actual text of letter to you through pouch. I understand Generalissimo participated in drafting Kung’s message. No comments on spurious argumentation is necessary but should like to call attention to following points (re my 166, January 26. To Secretary of Treasury from Adler).

1.
In paragraph 3 of section 1 Kung includes in CN dollars 10 billion of Chinese expenditures for our Army the sum of CN 4 billion for Chengtu projects which our Army is committed to paying for under arrangements it is hoped to negotiate. The Army also wishes to pay for the cost of its subsistence so far borne by Chinese Government.
2.
Re section 2,65 paragraph 1. Am reliably informed that the number of workers now engaged in Chengtu is 200,000 and that recruitment of a further 100,000 is expected. It is not unlikely, however, that Ministry [of] Communications padded lists it gave Ministry [of] Finance.
3.
Statement about rupees and black market in latter part of paragraph 2 of section 2 does not make sense as it stands, as rupees are at a premium over United States dollars in black market. But perhaps this is due to faulty expressions.
Gauss
  1. i. e., telegram No. 180, January 28, 9 a.m., p. 865.