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506
61-2
-2-#2365, December 10, 10 Pemes from Chungking,
required monthly from five to sixf hundred million
Chinese dollarse Kung's reactiont$o Somervell plan was
plainly adverse. New Wax Depastment proposal will
certainly meet cola reception.
Treasury may wish to push Ses negotiational
further, If they do not succeed I recommend that State,
Treasury, Was, PRL and other interosted war agencies
should consult and a strong formal approach should
then be made to Chinese Government for reasonable
equitable financial exchange arrangements preferable
within the general framework of reverse Lend-Lease
but assuring China of some reasonable accumulations
of United States dollars resources,
I feel that as China is hichly sensitive to
United States public opinion and criticiam some care-
fully controlled publicity on existing arbitrary
exchenge situation in China as affecting costs we
must pay for financing war effort here - costs 8 to 10
times those payable for comparable services and
facilities in United States - and possible suggestion
of Changressional interest in the matter would have
beneficial effect here in lighting a fire under those
inclined to be non-eboperative and evasive and
desirous of continuing to explois the situntion to
acomulate large United States dollars reserves out of
ous expenditures.
G/JSS
RR
MATIONAL
ARCHIVES
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"ocrText": "506\n61-2\n-2-#2365, December 10, 10 Pemes from Chungking,\nrequired monthly from five to sixf hundred million\nChinese dollarse Kung's reactiont$o Somervell plan was\nplainly adverse. New Wax Depastment proposal will\ncertainly meet cola reception.\nTreasury may wish to push Ses negotiational\nfurther, If they do not succeed I recommend that State,\nTreasury, Was, PRL and other interosted war agencies\nshould consult and a strong formal approach should\nthen be made to Chinese Government for reasonable\nequitable financial exchange arrangements preferable\nwithin the general framework of reverse Lend-Lease\nbut assuring China of some reasonable accumulations\nof United States dollars resources,\nI feel that as China is hichly sensitive to\nUnited States public opinion and criticiam some care-\nfully controlled publicity on existing arbitrary\nexchenge situation in China as affecting costs we\nmust pay for financing war effort here - costs 8 to 10\ntimes those payable for comparable services and\nfacilities in United States - and possible suggestion\nof Changressional interest in the matter would have\nbeneficial effect here in lighting a fire under those\ninclined to be non-eboperative and evasive and\ndesirous of continuing to explois the situntion to\nacomulate large United States dollars reserves out of\nous expenditures.\nG/JSS\nRR\nMATIONAL\nARCHIVES"
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