893.51/7754: Telegram
The Secretary of State to the Ambassador in China (Gauss)
329. The Department is fully alive to the seriousness of the potential situation described in paragraph 1 of your 434, March 8, 9 a.m. and in consultation with War and Treasury Departments is giving the matter active attention.
In suggesting that greater responsibility be placed upon the Chinese, with special reference to the labor supply, the Department was informed in a general way of past developments but felt that it would be worthwhile to exert renewed efforts along that line in as much as it clearly afforded one means available to the Chinese of minimizing the effect of the Army program on Chinese economy.
You will be promptly informed of the results of our consultations with Treasury and War Departments.