893.5151/10–845: Telegram
The Chargé in China (Robertson) to the Secretary of State
Chungking, October 8,
1945—2 p.m.
[Received 6 p.m.]
[Received 6 p.m.]
1755. For Secretary [of the] Treasury from Adler and Casaday.
- 1.
- Rate for U. S. currency has increased steadily since September 22, reaching 1500 on Saturday. It weakened a little this afternoon to 1400. United Clearing Board disposed of U. S. dollars half a million of [their?] October allotment at 800 at the beginning of October and U. S. dollars 200,000 at 1000 last Saturday. Dropped into UCB office at 9 a.m. today and found about two dozen Chinese bankers and businessmen waiting to buy blocked U. S. dollars at 1200 to 1 and more kept coming in. Treasurer of UCB hoped to dispose of U. S. dollars half a million today at 1200 to 1.
- 2.
- There [are?] a number of pointers appearing to indicate that the
Chinese are moving toward establishing rate of 500 to 1 with a
semi-official or official status.
- (a)
- They have established a remittance rate of 500 to 1 for overseas Chinese.
- (b)
- They have offered Allied internees 500 to 1.
- (c)
- They have given French military authorities in China 500 to 1 in one recent transaction.
- (d)
- They are anxious to establish a 500 to 1 rate for American business men which it is reported they intend to use as a precedent to replace the present British “channel” arrangement with sterling rate of 2000 to 1.
If this interpretation is correct, a move on the part of the Chinese to establish 500 to 1 for all American governmental and private transactions is to be anticipated. There should be no need to repeat that a 500 to 1 rate is unrealistic and detrimental not only to American governmental and business interests but also to the prospects for rehabilitating Chinese exports. [Adler and Casaday.]
Robertson