693.002/633: Telegram
The Secretary of State to the Consul General at Shanghai (Lockhart)
297. Reference Tokyo’s 294, May 5, 7 p.m., which Tokyo has been requested to repeat to you. Department understands that the “2 million yuan contributed from the customs in areas under Japanese control” referred to in paragraph 1 of the telegram under reference is contemplated as the share of the Tsingtao, Chefoo, Tientsin and Ching-wangtao customs districts which are in the area of the new “Federal Reserve Currency” and does not include Shanghai or other Yangtze river customs districts which are outside such area. With the foregoing in mind the Department desires to know whether the equivalent of 3 to 4 million yuan monthly is actually being collected at Shanghai by the customs in foreign currencies and, if so, what disposition is now being made of such collections by the bank or banks in which they are being deposited. The Department would also welcome your comment whether payment from such collections of the foreign exchange quotas of the north China ports in the area of the new “Federal Reserve Currency” would affect adversely the Chinese Government’s foreign exchange resources. Also, if practicable, please ascertain whether the foreign currencies collected at Shanghai would be adequate to supply Shanghai’s quota of foreign exchange in addition to the quotas of the north China ports.
In endeavoring to obtain the information desired by the Department, as indicated above, please do not disclose the information reported in Tokyo’s telegram under reference.
Please repeat this telegram and your reply to Tokyo and Hankow.