893.515/1072: Telegram
The Consul General at Shanghai ( Gauss ) to the Secretary of State
[Received 3:25 p.m.]
277. 1. As of possible interest, a prominent Chinese banker of Shanghai in discussing with me the press reports of the silver agreement at Washington expressed concern as to how far K. P. Chen had [Page 484] committed the Chinese. This concern apparently arose out of the fact, admitted by him confidentially but perhaps indiscreetly, that the Nanking Government has no control over the silver accumulations in Canton. He said that Canton has repeatedly threatened to sell independently of Nanking, and if Canton should sell then the more or less independent regime in the North would also be likely to take an independent attitude.
2. Referring to the minting of subsidiary silver coins, another source expressed concern lest similar coins might be minted in Japan and smuggled into circulation in China. This same source stated confidentially that China had agreed to mint token dollars with not less than 138 grains of silver but weight and fineness had not been stipulated. Repeated to Peiping and Nanking by mail.