893.515/529: Telegram
The Second Secretary of Legation in China (Atcheson) to the Secretary of State
[Received April 16—10:55 a.m.]
71. 1. Director of General Affairs Department of Ministry of Finance on whom I called today concerning pending case volunteered statement that Chinese hopes for some action by American Government which would alleviate the consequences resulting from the American silver purchasing program had been blasted by recent lowering of silver seigniorage rate in the United States and that the financial [Page 573] situation in China was now hopeless. To emphasize his statement he added that every one in the Ministry suffered continuous straits from feverish efforts to find nonexistent solution, and added that financial circles in Shanghai had become increasingly nervous, assets were now completely frozen, and many Chinese were hurriedly buying gold or sterling with the result that Chinese funds were flowing into the foreign banks.
2. Informant also stated that Japanese continued to show much dissatisfaction in connection with question of foreign loan to China and were accusing the Chinese, because of latter’s conversations with British and American Governments, of attempting to exclude Japan, although no real progress in the project had been made and, as indicated in my April 15, noon,84 the British Minister had left Shanghai without having received from the Chinese even any formula for international financial assistance.
- Not printed.↩