893.50 Recovery/7–749: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received July 8—12:11 a. m.]
Cantel 699. Have been approached by various Chinese official quarters including Tung Ling, Vice Minister Foreign Office, to support Chinese request re expenditure so-called uncommitted ECA funds, Toeca 344, July 7.29 There is every reason to believe that Generalissimo has at last made available at least part of his treasure trove to assist Government in its plans for monetary stabilization and continued resistance Communists. If resistance is to be continued, certainly one of first measures is stabilization currency and am inclined believe we should accede their request use uncommitted ECA funds that purpose. Also, if we are not to lay ourselves open to charge of in [Page 797] sincerity when we express our desire assist Nationalist Government in any feasible way, we had better have convincing arguments against not acceding to other requests as outlined Toeca 344.
- Not printed; it reported a Chinese request that $40,000,000 of uncommitted ECA funds be allocated to purchase gold or silver for use as working capital in financing imports.↩