893.515/835: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received November 8—9:35 a.m.]
123. Attitude of Japanese military in North China towards new Chinese monetary measures is still undefined. Believed that they [Page 640] continue to be greatly displeased because they were taken by surprise. There still exists a grave doubt that Japanese banks will conform to the new regulations. There also exists doubt in local banking circles whether the French banks will conform at least to the extent of turning over their silver to the Chinese. National City Bank has been under orders from its Shanghai headquarters not to pay out any silver but it has received no orders to turn over its silver to Chinese Government. There have been practically no silver exchange transactions in Peiping this week according to a local foreign banker and trade is practically at a standstill awaiting developments regarding Government’s ability to enforce its new monetary measures.
. . . . . . . . . . . . . .
Repeated to Nanking.