893.51/5–2745: Telegram
The Ambassador in China (Hurley) to the Secretary of State
[Received May 28—2:15 p.m.]
855. According well informed sources, Control Yuan late April submitted report on Chungking “gold scandal” Cawe So [case to?] Gmo72 allegedly recommending execution of K. K. Kwok, manager of Central Bank and named as one of principal sources for leak and one of those who profited most thereby; dismissal of Finance Minister O. K. Yui, and severe punishment for 4 or 5 other key Govt, bank or Finance Ministry officials. (ReDeptel 715, May 12, 2 [7] p.m.,73 and 760, May 19.) Gmo allegedly declined to take this drastic action but referred case to Judicial Yuan with instruction to draw up proceedings for Chungking experimental court. Two minor officials Central Trust jailed and await trial, probably in June, but most well-informed Chinese and foreigners here apparently do not believe action will be taken against Kwok, Yui or other high officials. Yui reportedly stated few days ago to representative of American firm that he and Kwok had received assurances from Gmo of latter’s continued confidence in them.
Case was discussed at recent Kmt74 Congress but interpellator was told by chairman [of] Examination Yuan that it had been referred to court.
At May 23 press conference Govt spokesman refused to discuss present status on grounds that case was sub judico.
[Here follows report on press comment.]
There appears to be a possibility that case may be held in abeyance pending return of Dr. Soong.