893.51/6143: Telegram
The Consul General at Shanghai ( Gauss ) to the Secretary of State
[Received April 17—9:07 a.m.]
211. 1. Kuomin despatch dated Nanking, April 11, reports interview with Ma Yin Chu, Chairman of the Finance Committee of the Legislative Yuan. Despatch concludes as follows: [Page 477]
“In conclusion, Doctor Ma said that personally he is of the opinion that during the period of extraordinary national emergency the Government should depend for its main source of revenue upon the income tax which he hoped the Government would immediately put into effect. Besides authorizing a limited currency inflation and issuing a few domestic loans, the Government may also utilize foreign capital to meet its financial needs or declare a moratorium on existing foreign loans.”
2. According to a Kuomin Nanking despatch April 16, a spokesman of the Ministry of Finance states Ma’s views were personal and not those advocated by the Government. Same despatch states Finance Minister Kung in an interview said China is still on the silver standard and that prior to November 3rd, 1935, China was on a free silver standard whereas now China is on a managed silver standard.
3. Above may be of interest in connection with the Department’s 84, April 9, 7 p.m., to the Embassy.