102.1/7–2447: Telegram
The Secretary of State to the Ambassador in China (Stuart)
945. From State and Treasury. This Govt is at loss to understand the position apparently being adopted by the Chinese Govt which refuses to make available a reasonable and equitable rate of exchange to support the activities of the US Govt in China and in particular the activities of elements of US Army and Navy stationed in China in the interests of the Chinese authorities and at their request (Embtels 1550, July 18 and 1577, July 2418).
The Treasury Attaché should reopen this question with the Governor of the Central Bank with a view to effecting speedily an equitable arrangement. You are also authorized to reinforce his representations [Page 1175] by bringing this matter to the attention of the Pres of Executive Yuan who was party to the last arrangement and strongly urge upon him that satisfactory arrangements be completed in the very near future.
Dept and Treasury infer from parenthetical comments in antecedent telegrams of Emb that if the Chinese Govt does not favor an agreement for current expenses it is prepared to look with tolerance on procurement of CN funds by US Govt agencies from private sources. If this correct, Treas Attaché is authorized to arrange for such procurement should emergency payments have to be made before envisaged arrangement through official channels can be effected. [State and Treasury.]
- Latter not printed.↩