893.515/506: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
Shanghai, April 5, 1935—9
a.m.
[Received April 5—8:35 a.m.]
[Received April 5—8:35 a.m.]
Masaji Yoshida, manager of Shanghai branch Mitsubishi Bank, issued statement yesterday through Rengo in regard to financial situation.
- 1.
- He recommended for China: “Reliance on self-help instead of foreign loans, moderation in exercise of Government’s control over banks and sound money policy”.
- 2.
- He attributes financial difficulties of China to American silver purchase plan: “I have no doubt that the recent American silver policy is the most important of the factors which have caused the present financial difficulties here. The silver purchase plan is a bald violation of the London Silver Pact of 1933 which deals only with measures designed to prevent a possible fall in the price of silver and aims at its stabilization. Only sophists could insist that the pact provides for the raising of the silver price, otherwise Chinese reservations to the ratifications to the pact mean nothing. The United States is being enabled to carry out this act of violations through the acquiescence of the seven signatory powers other than China which are benefited by it. I firmly believe that out of her own interception [sic] or through pressure which it is hoped will be brought to bear by Great Britain and other powers concerned, America will sooner or later moderate her present silver policy thus relieving China of the chief external cause of her financial difficulties.”
- 3.
- Certain circles see in this statement a desire on the part of Japan to create an impression that the present economic adversity is founded upon American [action] and thus arouse anti-American feeling which will eventually strengthen Japanese position in China.
Cunningham