893.51/7721: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received October 29—1:25 p.m.]
2041. Embassy’s 1858, October 4. Government spokesman announced about middle of month that some of the gold has already reached China and while no announcement has been made of gold being sold or offered for sale we have been informed in strict confidence by authoritative source that small amounts are actually being sold by Government in order to test the market.
We understand, however, that consideration is still being given to question whether the gold might be retained by Government as a reserve to help maintain confidence in the continuously expanding currency and some observers are of opinion that Government is considering retention of the gold for the purpose also of accumulating stock for use in connection with postwar international monetary arrangement.