693.0031 Tibet/8–3148
The Leader of the Tibetan Trade Mission (Shakabpa) to the Secretary of State
Your Excellency: I have the honour to acknowledge your kind letter dated August 27, 1948 (Ref FN), signed by J. Burke Knapp esquire and express our gratitude in the Treasury’s consent to sell to the Government of Tibet fifty thousand ounces of gold for currency stabilization.
And regarding the Dollar exchange with which to pay for the gold, we received a telegram from the Government of Tibet. In the telegram we are informed that it seems the Government of India is going in the long run to release U. S. Dollars for Tibet.
But because the talks going on between the Government of India and the Government of Tibet regarding the continuation or otherwise of the old treaty between Tibet and British India have not concluded, [Page 784] it may be that it will take some more time before the U. S. Dollar is actually released for us by the Government of India.
Therefore, we are now instructed by the Government of Tibet to request to the Government of the United States for a temporary loan of two million dollars with which to buy the gold and some machineries in the United States for export to Tibet.
This loan, of course, will be repaid, as soon as we get the Dollar release from the Government of India. But in case for any reason unforeseen she will not release the necessary Dollars for Tibet, we intend to repay the Dollar loan from the proceeds of exports to the United States of our products of Tibet such as wool, furs, musk, yak-tails, etc. Of course, all necessary talks with the Government of India on this score will be done by the Tibetan Government herself.
The Government of Tibet has instructed us to apply for this temporary loan because she thinks that this will give her ample time and opportunity to withstand the pressure of the Government of India on Tibet to re-settle the old treaty according to the original terms which are rather disadvantageous to Tibet in as much as they place difficulties in her way towards commercial and other relations with other countries.
We hope, Your Excellency will, after careful consideration, favour us with an early, favourable and sympathetic reply.
I have [etc.]
Leader, Tibet Trade Mission)