800.00 Summaries/7–344: Telegram

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

904. On June 27 the President disclosed at his press conference that he had conferred that morning with Dr. Kung, who was here to talk about various problems in China, and that within a couple of weeks Dr. Kung would return from the Monetary Conference at Bretton Woods to continue his discussions with the President. The President remarked that Dr. Kung brought a letter of introduction from Generalissimo Chiang Kai-shek but that this really was not necessary since he knew Dr. Kung so well. The President declared that he thought discussions about conduct of war and economic affairs in China would be helpful. The President said that Dr. Kung was coming in again on June 28.

When asked if the Chinese Ambassador was seeking another currency stabilization loan for China, the President said that he didn’t know.

After meeting with the President on June 27 Dr. Kung said in a statement, issued through China–America Council of Commerce and Industry, that “We heartily endorse the principle of reciprocal treatment and multilateral trade as championed by President Roosevelt and Secretary Hull.” Dr. Kung reportedly said that China welcomes foreign capital because it will hasten to rebuild the country which has [Page 934] been devastated by prolonged and destructive war and that American collaboration will be a sure means to overhaul and modernize the national economy.

Hull