893.51/7422: Telegram
The Acting Secretary of State to the Ambassador in China (Gauss)
154. Your 176, March 1, noon. Several days ago the Treasury Department gave to T. V. Soong informally a draft of an agreement8 whereunder the $500,000,000 appropriated would be made available to the Chinese Government, with an explanation that this was to be regarded as a tentative draft presented to Soong for his consideration and with invitation to him for his comments or suggestions. It was not intended that Soong refer the draft to his Government before informing Treasury officials, and through them State Department officials, of his reaction, with suggestions, if any; and because of that, the Department did not inform you by telegraph of the action taken.
Department suggests that, unless you perceive objection, you inform appropriate high officials of the Chinese Government informally and in confidence of the above.
Department, as the matter now stands, believes it desirable that you refrain from being drawn into any discussion of terms or provisions of a potential agreement regarding the funds; but, should you be drawn into any discussion of the subject in general, you might to advantage point out that in this country the authorities responsible in connection with disposal and use of appropriated funds are under obligation to report periodically upon the uses to which funds are put.
- February 21, United States Relations With China, p. 479.↩