893.50/7–744: Telegram

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

922. According to New York Herald Tribune on July 4, Kung made a statement that the Chinese Government “will give protection to foreign investments” for the development of China’s resources after the war. Kung was reportedly hopeful that the United States “will take an active part in aiding in the postwar development of China”. He asserted that China is planning “a great economic expansion and development after the war” and that “this includes a large-scale program of industrialization besides the development and modernization of agriculture”. He stated that 50 or 60 transport planes of 4–ton capacity carrying goods to China could combat inflation more successfully than any other immediate measure.