893.515/5–2045: Telegram
The Acting Secretary of State to the Ambassador in China (Hurley)
761. From the Secretary of the Treasury.
Part I. For your information and use in conversations with Chinese officials including the Minister of Finance, I am transmitting text of letter sent May 16, 1945 to Dr. Soong regarding Chinese request for gold. The decisions embodied in the letter were arrived at after full discussion with State, War and FEA.
[Here follows text of letter from the Secretary of the Treasury to Dr. Soong, printed on page 1089.]
Part II. 1. I would very much appreciate receiving your reactions to our proposal that China institute a $500 million fund from her existing dollar balances. The uses to which this Currency Stabilization Fund would be put would be a broad concerted program for combating inflation and for currency stabilization and these uses would be subject to joint agreement. The time at which the Fund’s operations would start would be discussed at a later date. This proposal for a $500 million Fund was made with the concurrence of State, War and FEA. Dr. Soong has referred the proposal to the Generalissimo.
2. The Chinese schedule of gold shipments referred to in my letter to Dr. Soong calls for the shipment of about $80 million by air and about $108 million by boat during the next eight months.
3. Adler will give you full details on discussions with Dr. Soong on his return to Chungking.