Office of the Historian

893.5017/11–2847: Telegram

The Acting Secretary of State to the Ambassador in China (Stuart)

Washington, December 3, 1947—8 p.m.

1464. In view drastic measures against black market reported Shanghai Contel Nov 28,7 p.m.,82 Dept wishes emphasize that authorization resort unofficial market (Deptel 1441 Nov 28 Section 3) lies in [Page 1229] Emb’s discretion alone. Dept continues regard realistic rate absolutely essential and cannot believe China Govt will refuse grant such rate if realized to be essential continuance US operations China.

Lovett
  1. Not printed; it cited the Generalissimo’s authorization to contract credits issued by banks, sell 40,000 bales of cotton yarn by China Textile Industries at open market prices, crack down on black market operators in exchange, and effect limited emergency purchase of Chinese currency in Hong Kong at black market rates.↩