893.5151/501: Telegram
The Consul at Chefoo (Roberts) to the Secretary of State
Chefoo, August 26, 1938—4
p.m.
[Received August 27—3 a.m.]
[Received August 27—3 a.m.]
Referring to Department’s telegram No. 222, August 22, 6 p.m., repeated by the Embassy at Peiping.
- 1.
- Yokohama Specie Bank after Japanese occupation reopened Chefoo agency for general business including exchange operations July 1st. This bank will buy dollar exchange only at rate of 29 American cents for one Federal Reserve dollar, whereas the rate for Chinese dollars is about 18 American cents. The American business community cannot afford to negotiate dollar exchange to the Yokohama Specie Bank at this arbitrary rate.
- 2.
- There is no other Chefoo agency willing to accept American currency in exchange for Federal Reserve notes.
- 3.
- The Hong Kong and Shanghai Banking Corporation is the only other agency handling foreign exchange. This bank pays out Chinese national currency composed of a mixture of Shanghai notes and Northern Bank notes which circulate in Chefoo with increasing difficulty due to the restrictions imposed by the Japanese and the provisional Government authorities.
- 4.
- Local merchants requiring Federal Reserve notes for payment of import duties, postage, telegraphic charges have been able to buy small quantities in open market paying premium in Chinese national currency.
- 5.
- The Consulate in Chefoo and certain American merchants have been able to negotiate bills of exchange at Tientsin for currency that can be used at Chefoo but transportation difficulties and restrictions may block this method at any moment.
- 6.
- Repeated to Peiping and Chungking.
Roberts