893.5151/677: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

599. Following is Embassy’s translation of note from the Chinese Minister for Foreign Affairs dated November 15: [Page 471]

“The Ministry of Foreign Affairs presents its compliments to the American Embassy and has the honor to state that it has received a report to the effect that pursuant to an instruction of the bogus Reformed Government the bogus Superintendent of Customs at Shanghai addressed on November 4 a communication to the Commissioner of Customs of that port to strictly prohibit the transportation of legal tender notes. The communication also stated that foreign banks have not acted in accordance with new rules, and that in case legal tender notes are needed for legitimate trade approval should first be obtained from the customs authorities. The report added that it is learned that the bogus customs authorities have transmitted the information to the various foreign Consuls.

The Ministry observes that the Japanese have been doing all possible in attempting to intensify economic invasion and to monopolize the Far Eastern market. They have even instigated the bogus regime to announce the prohibition at Shanghai of the transportation of legal tender notes. It is in fact detrimental to the legitimate interests of the various powers in China. The Ministry, inditing this third person note for the Embassy’s information, has the honor to request that the Embassy transmit instructions to American banks in Shanghai to reject the unreasonable request of the Japanese puppets. The courtesy of a reply is also requested. Seal, et cetera”.

Repeated to Peiping and Shanghai.

Peck