102.1/2–2847: Telegram
The Secretary of State to the Ambassador in China (Stuart)
248. For Adler from State, Treasury, War and Navy. In absence text of agreement not yet received here, not understood how Chinese can claim agreement automatically terminated. (Embtel 347, Feb 22.) Unless there was clear understanding on both sides at time of agreement that it would terminate under circumstances such as now exist, you are instructed to inform Pei and Soong that US Govt considers agreement still in effect. War and Navy are agreeable to use of official rate only so long as no more favorable rate for US dollar would appear on Hong Kong basis in accordance original understanding with Chinese Govt.
If, however, present Hong Kong rate is radically out of line with your appraisal of realistic purchasing power of yuan, you are authorized to hold up above communication and report fully to Washington.
Re last sentence your 347, steps taken by Army and Navy re troop pay question are approved. [State, Treasury, War and Navy.]