893.5151/11–2646: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received November 27—8:56 a.m.]
1975. From Adler to Secretary of Treasury and at Butterworth’s request to Acheson and Clayton. ReEmtels 1445 of September 10 and 1588 of October 4.
In conversation with Pei on November 22 he informed Casaday and me that Central Bank since March 4 had provided US dollars 215 million for commercial cover and for National Resources Commission expenditures and $49,000,000 for Chinese Government expenditures abroad.
During the same period it sold 1,350,000 grams of gold. It has also sold about sterling 2 million. Thus Central Bank foreign exchange and gold resources have been depleted by approximately 320 million dollars in less than 9 months. Exchange adjustment of August 15 did not diminish rates of loss of gold and foreign exchange, as average [Page 1026] monthly loss in last 3 months has been dollars 50 million. As indicated in 4 of Emtel 1910, November 19, in view of heavy drain of China’s foreign exchange assets prospects are inevitably for continued tightening of trade and exchange controls. [Adler.]