893.515/1555a: Telegram
The Secretary of State to the Chargé in China (Atcheson)
Washington, July 16,
1943—9 p.m.
911. For Adler from Secretary of the Treasury. The following is a message for transmittal to Dr. Kung:
- 1.
- The proposal of the Government of China to use $200 million out of the $500 million financial aid to purchase gold to be sent to China for sale to the public as a means of helping to check inflation has been considered by the Treasury.
- 2.
- The Treasury presumes that the Government of China has taken fully into consideration the costs, difficulties and dangers inherent in the use of gold as a means of checking the present inflation in China.
- 3.
- The Treasury is prepared in principle to agree to the proposal of the Government of China, since the latter deems that the sale of gold to the public will aid its war effort by helping to achieve greater monetary stability. It will be necessary, of course, for the Treasury to have a formal request from you before any definitive decision and action can be taken. [Morgenthau.]
Hull