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518
-3- # 2478, December 23, 3 p.m. from Chungking
Chiang indicated with firmness that exchange
rate for Chinese dollars cannot be changed. I said
I fully appreciated his attitude on that question
but suggested that other proposals looking to solu-
tion of the problem such as reverse Lend Lease or
suggestion Morgenthau had made to Kung regarding
sale of gold might be adopted without necessitating
a change in exchange rate. Mme Chiang said that
Chinese Government's efforts to sell gold had been
a failure; there was no market for gold. Chiang
said he had been 8 tudying the matter of reverse
Lend Lease, that he and Kung were much worried
over whole financial situation, that it is impossible
to alter exchange rate and imperative that value
of national currency be supported. He requested
me to see Kung again and, just before retiring from
the room in his customary way, asked with a show
of some emphasis and exasperation that I inform
our military and treasury people that failure to
support China's currency would result in both
economic and military collapse of China.
GAUSS
THUNDS
INATIONAL
ARCHIVES AND
RECORDS
is
SERVICE
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Context sent to Scholar
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"ocrText": "518\n-3- # 2478, December 23, 3 p.m. from Chungking\nChiang indicated with firmness that exchange\nrate for Chinese dollars cannot be changed. I said\nI fully appreciated his attitude on that question\nbut suggested that other proposals looking to solu-\ntion of the problem such as reverse Lend Lease or\nsuggestion Morgenthau had made to Kung regarding\nsale of gold might be adopted without necessitating\na change in exchange rate. Mme Chiang said that\nChinese Government's efforts to sell gold had been\na failure; there was no market for gold. Chiang\nsaid he had been 8 tudying the matter of reverse\nLend Lease, that he and Kung were much worried\nover whole financial situation, that it is impossible\nto alter exchange rate and imperative that value\nof national currency be supported. He requested\nme to see Kung again and, just before retiring from\nthe room in his customary way, asked with a show\nof some emphasis and exasperation that I inform\nour military and treasury people that failure to\nsupport China's currency would result in both\neconomic and military collapse of China.\nGAUSS\nTHUNDS\nINATIONAL\nARCHIVES AND\nRECORDS\nis\nSERVICE"
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