893.515/9–1645: Telegram
The Ambassador in China (Hurley) to the Secretary of State
[Received 11:40 a.m.]
1598. To Secretary of the Treasury from Adler and Casaday.
1. Government spokesman announced at foreign press conference September 12 that puppet currency in denominations below CRB (Chinese Reserve Bank) $1000 would be redeemed by Central Government at rates varying from locality to locality and without any restrictions as to amount redeemable by each individual. Saw Minister Finance on September 14 and he informed us above announcement was inaccurate except that it was true that redemption would vary from locality to locality. He was awaiting full details as to total amount of CRB (Chinese Reserve Bank) dollar issue, issue by denominations, et cetera, before adopting final plans. He indicated that CRB (Chinese Reserve Bank) $500 notes might not be redeemed if amount issued was too large. He had instructed all Central Government agencies in Shanghai to make payments in fapi.
According to his information, CRB (Chinese Reserve Bank) dollar note issue was 1900 billion in mid-August and about 3500 billion a week ago. Daily note issue was 40 billion of which about half went to Japanese. He had instructed Central Bank representative to take over and destroy CRB printing press plates as soon as possible.
2. There follows a cable on financial and economic situation in Shanghai.35 It is substance of report transmitted by cable to Adler by OWI (Office War Information) representative in Shanghai. This [Page 1148] report was written by John Ahlers,36 a reputable non-Nazi German financial journalist, at OWI (Office War Information) representative’s request. [Adler and Casaday.]