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10-7
520
2- - #2478, December 23, 3 p.m. (SECTION TWO) from Chungking
expenditures. stilwell informed me December 20 that
Chiang had asked for a billion dollar loan and was
expecting an answer that day. He told me that and no
more. I assume request was made in connection with
military discussions and through military channels.
It is unfortunate that Embassy is not k ept fully
informed of what transpires in Sino-American relatione.
Embargy's opinion regarding further loan to China
at this time was carefully set out in my 2361, December
d
9.
I am strongly of opinion that we should stand
firm on the subject at this time.
(3) I have no information regarding military plans
for a Burma campaign designed to restore land trans-
portation to China which experts here consider the only
possible measure for amelioration of fantastic economic
situation. I am prepared to believe that while the
masses of the people are not concerned by the foreign
exchange rate, any substantial change therein would
be availed of by hoarders and speculators still further
to accelerate rising prices.
Chinese Government has ectually done nothing sub-
stantial to seek out and deal with these hoarders and
speculatore. I believe, however, that China sub-
stantial U.S. currency reserves at this time and that
repsonnble mearure to meet the situation affecting our
military
By
Not printed.
E
management
SERVIOS
RECOADS
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"ocrText": "10-7\n520\n2- - #2478, December 23, 3 p.m. (SECTION TWO) from Chungking\nexpenditures. stilwell informed me December 20 that\nChiang had asked for a billion dollar loan and was\nexpecting an answer that day. He told me that and no\nmore. I assume request was made in connection with\nmilitary discussions and through military channels.\nIt is unfortunate that Embassy is not k ept fully\ninformed of what transpires in Sino-American relatione.\nEmbargy's opinion regarding further loan to China\nat this time was carefully set out in my 2361, December\nd\n9.\nI am strongly of opinion that we should stand\nfirm on the subject at this time.\n(3) I have no information regarding military plans\nfor a Burma campaign designed to restore land trans-\nportation to China which experts here consider the only\npossible measure for amelioration of fantastic economic\nsituation. I am prepared to believe that while the\nmasses of the people are not concerned by the foreign\nexchange rate, any substantial change therein would\nbe availed of by hoarders and speculators still further\nto accelerate rising prices.\nChinese Government has ectually done nothing sub-\nstantial to seek out and deal with these hoarders and\nspeculatore. I believe, however, that China sub-\nstantial U.S. currency reserves at this time and that\nrepsonnble mearure to meet the situation affecting our\nmilitary\nBy\nNot printed.\nE\nmanagement\nSERVIOS\nRECOADS"
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