893.51/6082: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received February 24—10:30 a.m.]
113. 1. Press today reports that last week Central Political Council approved Minister of Finance Kung’s economic policy for China and [Page 465] enjoined Executive Yuan to take effective steps within 1 month looking toward the execution of the plan.
2. Kung’s plan refers to success of Italy, Russia and Japan and calls for China to “pledge ourselves to enforce the policy of economic self-sufficiency” “according to a designed program”.
3. Plan provides practical primary education, thrift, utilization wasteland, Government subsidies to banks to enable agricultural and industrial loans at low interest, promotion and nationalization domestic industries, 3 days annual conscripted labor or head tax in lieu thereof, establishment quality standards exports and balancing of imports and exports with import trade under “direct as well as indirect control of Government” “measures should be adopted to arrange for the enforcement of exchange by barter or by a quota system with the various foreign powers”.
4. Editorial comment thus far limited to brief laudatory remarks of the China press.
Repeated to Embassy, Peiping and mail to Nanking.