893.51/7121
The Adviser on Political Relations (Hornbeck) to the Secretary of State
Dear Mr. Secretary: We have a letter, addressed by Mr. Morgenthau to me, under date April 30,61 in which Mr. Morgenthau states that he deems it inadvisable to undertake at this time any Stabilization Fund activity which would attempt to stabilize the dollar-yuan exchange; that he would not use the Fund for that purpose without first obtaining permission from the Congress; and that it does not seem to him that this is an appropriate time to request such permission.
This disposes, adversely, of the question of possible action by the Treasury toward giving support to Chinese currency.
Mr. Morgenthau adds that he would be interested in cooperating in any consideration that might be given the proposal that the United States make a gift of 15 million bushels of wheat for relief purposes to China, but that furtherance of such a proposal would not seem to be the primary responsibility of the Treasury Department.
- Not printed.↩