102.1/4–2847: Telegram
The Secretary of State to the Ambassador in China (Stuart)
Washington, May 1, 1947—6
p.m.
515. From State and Treasury for Ambassador and Adler.
- 1.
- Navy Dept pressing for more favorable rate for official expenditures (reurtel 915 [914], Apr 28). In view of price and exchange rate developments in recent days recommend reconsideration desirability negotiating special rate.
- 2.
- Agreed that rate negotiations should not be linked with any possible future loan discussions. As indicated Depts 65, Jan 15, failure of Chinese to make yuan available at reasonable cost may seriously imperil continuance present US Army and Navy programs in China. Reasonable rate not to be considered favor to US which could weaken in any way US position on further financial aid to China. [State and Treasury.]
Marshall