893.51/7708: Telegram
The Chargé in China (Atcheson) to the Secretary of State
[Received September 17—1:27 p.m.]
1743. Central News Agency in referring to resolution adopted by CEC session September 11 on program for intensification of price control states that “arrangements have been made with the United States for the purchase of United States $200,000,000 worth of gold.” In the resolution appears a statement that “the United States has promised to lend to China a large quantity of gold.”
Government spokesman at press conference September 15 as reported by Central News Agency stated that Chinese Government has proposed to use US $200,000,000 from balance of US $500,000,000 credit extended by American Government to buy gold bullion to combat inflation in China. Spokesman also said that Chinese Government has decided to revise stabilization agreement and is negotiating with U. S. Government at Washington.