893.5151/5–247: Telegram
The Ambassador in China (Stuart) to the Secretary of State
Nanking, May 2, 1947—5
p.m.
[Received May 2—5:12 a.m.]
[Received May 2—5:12 a.m.]
947. For State and Treasury from Butterworth and Adler.
- 1.
- There is no question as to desirability of negotiation special rate (reference your telegram 515 of May 1 which crossed Embassy’s telegram 946 of May 2). Sole question is one of timing, i. e., whether formal request be made now or next week or week after. There is also unanimity that reasonable rate not to be considered favor to us. However, case for reasonable rate in absence of adjustment in official rate of exchange rests on deteriorating financial and economic situation, which Chinese invoke as chief ground for urgent action on such financial aid. Therefore they would certainly feel their case for immediate aid would be strengthened at least morally by immediate request for reasonable rate.
- 2.
- In meantime as indicated in paragraph 2 of Embassy’s telegram 946 of May 2, Adler has already had exploratory talk with Governor Central Bank and will repeat substance of conversation to Minister of Finance tomorrow. He is also planning trip to Shanghai over weekend for further discussions with Governor Central Bank and one or two of his advisers. [Butterworth and Adler.]
Stuart