033.1100 Rogers, James H./75: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received July 6—8:35 a.m.]
149. For Morgenthau from Rogers. In view publicity American silver embargo I submit the following:
Optional destinations for silver shipments from Shanghai are not unusual being adopted for purpose of saving expense of reconsignment if during transit another destination should become more profitable. Because of wide variations in price of silver in various parts of world and because of uncertainty regarding American purchases such options have been usual.
[Page 439]Continuously substantial outflows of silver from Shanghai are apparently partly result of fear of silver embargo or of increase in export tax on silver. In my opinion national embargo unlikely at present but increase in export tax is apt to follow considerable further outflow. [Rogers.]