102.1/1–2547: Telegram

The Secretary of State to the Consul General at Shanghai (Davis)

143. From State, War, Navy and Treasury to Adler and Casaday. In preference [reference] Pei proposal (Para 1 your 196, Jan 25) War and Navy desire to purchase yuan outright at rate based on Hong Kong cross rate 3 days or some other short fixed period prior to date of purchase. War and Navy desire to avoid any form of yuan advances, since disbursing officer could not in any event utilize yuan until purchase rate had been determined. However, if Pei feels strongly on this point, War and Navy approve acceptance his original [Page 1043] proposal and will issue appropriate instructions to accounting officers. Assume no interest would be involved. Agree that phrase “for time being” should be included in any agreement.

We congratulate you on success of your negotiations.

Sent Shanghai, repeated to Nanking.35 [State, War, Navy, and Treasury.]

  1. Repeated to Nanking as telegram No. 104.