102.1/10537b: Telegram

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

437. For Adler from the Secretary of the Treasury. Meeting was held in Treasury on March 30 together with representatives of War and State Departments to discuss proposal outlined in paragraph 2 of your cable of March 28.88 Approval was given by War, State and Treasury to this proposal and we presume that General Stilwell has already been so informed by War Department.

With regard to sale of gold on joint account to raise part of our fapi requirements, Treasury has informed War and State that, as indicated on past occasions, we are in favor of such program. The Treasury presumes from information received that Ambassador Gauss and General Stilwell are also in favor of such program.

Therefore, as soon as agreement has been reached with regard to the financing of U. S. Army program in China, propose to Dr. Kung sale of gold and/or U. S. dollar currency on joint account to meet all United States governmental expenditures, except those of the Army.

Reference your cables of March 28, 1944, No. 541 and March 23, No. 517, and our cable of March 8, 1944, No. 314.89 [Morgenthau.]

Hull
  1. Telegram No. 541, p. 909.
  2. Telegram No. 314 not printed: for substance, see footnote 84, p. 907.