893.5151/967a: Telegram
The Secretary of State to the Ambassador in China (Gauss)
1474. For Adler from Secretary of the Treasury. Please discuss the following matter with Dr. Kung.
The Treasury has received a number of complaints from missionary societies regarding losses resulting to these societies from the existing official exchange rate. The latest complaint received has been from the Maryknoll Fathers.
These missionary societies indicate that most of their remittances are for relief purposes. Would it not be possible for Dr. Kung to grant these missionary societies the special rate which is reportedly being given to other relief organizations, at least for that portion of their remittances which are for relief purposes?
[Page 452]It should be pointed out to Dr. Kung that these missionary organizations, like the other charitable and relief organizations which have been sending funds to China, not only make significant contributions to China’s dollar earnings but also are important in educating the American people regarding China and in building good will in the United States for the Chinese people. On numerous occasions these missionary, relief, educational and similar organizations have indicated that they may be forced to discontinue all of their activities on behalf of China because of the artificially high character of the existing exchange rate.
Treasury does not desire to raise at this time the general question of a reduction in China’s foreign exchange rate to a realistic level. Therefore, limit your discussion with Dr. Kung to the problems of missionary and similar organizations. [Morgenthau.]