893.51/8–1445: Telegram

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

1354. Re your 1205, August 6, Embassy considers advantageous your proposal for use of gold bullion to combat effect of inflation on Chinese war production. Taking up questions informally with responsible Chinese officials would be an excellent way of ascertaining whether Chinese intend to use gold to combat inflation. In view of present obscure situation, however, suggest we delay discussing matter informally with Chinese. Please repeat to Treasury.

Hurley