102.1/10–2844: Telegram

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

1395. For Friedman from Under Secretary Bell. Reference your no. 1629, September 30, 1944.

[Page 946]

Treasury understands that United States Government personnel paid in United States currency has been selling currency in open market and then using yuan to purchase United States dollar drafts from United Clearing Board, resulting in exchange profit for such personnel.

The Treasury has received a copy of circular no. 49, dated July 18, 1944, addressed by Ambassador Gauss to American diplomatic and consular officers in China on the subject of exchange transactions for profit. The Treasury is in agreement with the policy incorporated in such circular, and you are instructed to advise Evans and any other Treasury personnel arriving in China that the Treasury expects them to be governed accordingly. [Bell.]

Stettinius