File No. 893.51/1997
The Chargé in China ( MacMurray) to the Secretary of State
The protest of the banks reported in my August 17, 5 p.m., having elicited from the Minister of Finance only a statement that the regulations for gold notes were in pursuance of a plan of monetary reform and that there was no occasion for anxiety, interested legations on the 31st ultimo formally protested to the Chinese Government by identic notes of the same tenor as the protest of the banks.
I am now reliably informed that the note of the Japanese Legation contained an additional passage stating that the Japanese Government further objected to the adoption of these regulations in disregard of assurances received from the Chinese Government that Baron Sakatani would be employed as financial adviser to assist in the reform of currency.
It seems likely that the question of the rights of consortium in the matter will not become acute until October 14 on the expiration of their option under the currency loan agreement. It now seems advisable to reserve until that time any action under the authorization contained in your telegram of August 21, 3 p.m.