Disposition of Gold Shipped to China under the 1942 Financial Aid of $500 Million Extended by the U.S.

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September 4, 1951 Disposition of Gold Shipped to China under the 1942 Financial Aid of $500 Million Extended by the U. S. 1. of the $500 million in financial aid extended to China by the United States, the sum of 220 million was made available in the form of gold at the request of China. Funds were transferred to Chinese accounts in the United States for the purchase of gold in the following amounts and on the following dates: Amount Date of Transfer (millions) Feb. 1, 1943 $ 20 Oct. 13, 1944 20 May 22, 1945 60 June 12, 1945 60 July 27, 1945 60 Total $220 2. The gold was obtained by China for shipment to that country for the purpose of selling gold to the public in an attempt to retard the serious inflation. Gold shipments from the United States to China were made as follows: Value Year (millions) 1943 $ 10.5 1944 15.4 1945 122.9 1946 68.6 217.4 Add: amount obtained from U.K.'s gold stock in India in exchange for transfer from Chinose account in U.S. to U.K. account 1.4 Total $218.4 3. Detailed information on the sales of gold undertaken by the Chinese Government is not available. On June 9, 1948, the Department of State sent a letter to the Chinese Embassy in the United States enclosing a questionnaire which raised, among others, a series of questions relating to these gold sales. In reply to this letter, the Chinese Embassy in a letter dated February 4, 1950 to the Department of State submitted the following informa- tion with regard to gold sales. The letter, it may be noted, recognized the fact that this reply "may not be as comprehensive as was desired". DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12. 1979 TREASURY GUIDELINE 6-27-79 By NLT- HL NARS, Date 7-17-80