893.50/12–3047: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received December 31—1:35 a.m.]
2468. When we talked to Foreign Minister, Dr. Wang Shih-chieh, today he was greatly perturbed at rapidity with which situation was deteriorating in China. He said that recent Cabinet meetings to consider the budget and memoranda he had seen indicated to him clearly, although he was not an economist, that nothing could be done to improve situation in China until there was currency stabilization. Cabinet had considered, he said, plans for reducing personnel in army and civil service while at same time improving status and pay of those remaining and had found this impossible without increasing revenue. Cabinet was prepared to increase revenue by increased taxation, but found this impossible with constantly depreciating currency. Crux of problem therefore, said Dr. Wang, seemed clearly to be primarily in stabilization of currency. He agreed immediately, however, that stabilization of currency alone would be ineffective and must be accompanied by adequate measures in other fields. We pointed out to him some of the undertakings which are expected of European Govts receiving aid and he raised no objection to possible similar or comparable undertakings by China.
Personnel of technical mission which will visit Washington early January (reftel 2400, December 15, 5 p.m.) still awaiting approval Gimo, but persons under consideration are General Yu Ta-wei87 and Pei Tsu-yee, formerly of Central Bank who are planning to depart early January.
- Chinese Minister of Communications.↩