Foreign Relations of the United States: Diplomatic Papers, 1943, China

893.5151/960: Telegram

The Ambassador in China (Gauss) to the Secretary of State

Chungking, October 10, 1943—noon.
[Received 12:42 p.m.]

1907. Secretary of the Treasury from Adler.

1. Dr. Kung wrote Board on October 5 that on President Chiang’s instructions, Ministry of Finance had drafted a measure according to which overseas Chinese remittances up to US $200 or sterling 50 a month would receive official rate plus 50% which he was submitting for Board’s consideration. Board replied taking note of proposal and pointing out that it was inadvisable to place upper limit on overseas remittances receiving additional 50%.

2. Board is preparing a letter to be sent to Dr. Kung in which Board will indicate the anomalous situation arising from the fact that with going into effect of proposed new arrangement for overseas remittance almost all foreign exchange in payments will receive 30 to 1 and will not go to Board while Board will continue to sell foreign exchange under November agreement and on current applications at 20 to 1 and will suggest that it would be much simpler if all China’s foreign exchange transactions were handled at one rate. [Adler.]

Gauss