893.515/937: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received December 19—8:30 a.m.]
235. Embassy’s 170, November 22, 5 p.m.63 The Embassy is reliably informed that there was a strong demand for foreign currencies in the market today and that the Central Bank of China sold a total of 200,000 pounds sterling chiefly to Japanese buyers. The same source states that the Salt Bank whose president is the new Minister of Industries has been directed to buy 500,000 pounds (sterling) through its various branches in China within the next 2 months covering in terms of Shanghai currency. Two possible implications of these facts are that informed quarters anticipate (1) an early decline of the Chinese dollar, and (2) the possible severance of financial relations between North China and the rest of the country.
To Tokyo by mail.
- Not printed.↩