893.51/6711: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received October 4—10:48 a.m.]
1294. There is a persistent rumor in local foreign banking circles today to the effect that a wheat and flour or wheat and cotton loan amounting to approximately $50,000,000 United States currency has been concluded or is about to be concluded between the Central Government of China and the Government of the United States. The local exchange market is very nervous and this office has received several inquiries from banks and business houses regarding the reliability of this rumor.
Inasmuch as such a loan would likely have a marked effect upon the official Japanese attitude towards American interests in China, any information that the Department may feel can properly be communicated to me confidentially or otherwise would be helpful.
Copy of text by mail to Peiping and Chungking.