Editorial Note
The Republic of Korea announced that as of October 1, 1954, it would no longer make hwan available, except at the 180 to 1 rate, to pay for hwan currency advances to United States armed forces and Korean employees of the United States. This action was the culmination of a long-standing controversy between the two governments which was not resolved despite the agreement of February 25, 1953. For the essence of that understanding, see the editorial note, page 797.
Prior to this decision, the United States had offered to pay South Korea for its drawings of hwan for June, July, and August 1954 at the rate of 254 to 1. The Korean decision of October 1 resulted in the United States being left with only enough hwan reserves to pay its expenses for a limited period. Additional information on the United States position in this issue can be found in telegram C 69804 from Hull, October 4, 1954. (FE files, lot 55 D 480, “Korean Black Book, October 1954”)