893.51/1–2946: Telegram

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

178. For Secretary [of] Treasury from Adler: Herewith two statements from the Central News [Agency] of January 17 and 26 respectively.

“Shanghai. Banking establishments here are instructed not to open deposit accounts or transact overseas remittances in foreign currencies for their clients according to an announcement issued by the commissioner’s office of the Ministry of Finance for the Shanghai-Nanking area. Announcement said that transactions in foreign currencies prior to the promulgation of China’s foreign exchange regulations will seriously affect the nation’s financial policy”.
“Shanghai. In an interview with local pressmen today Mr. O. K. Yui, Chinese Minister of Finance, said that the final details for a solution of the foreign exchange problem [have been?] worked out by the Government and will be made public soon. He added that despite heavy expenditure for reorganization of the army, the Ministry of Finance will readjust the tax system to stabilize currency and commodity prices and to strive to coordinate financial with economic policy.
Regarding Bretton Woods monetary agreement56 Mr. Yui revealed that Mr. Hsi Te Mou57 and Mr. T. V. Soong who are now both in America have been appointed as Chinese delegates to a conference of the signatory nations to be held in the United States. (Presumably this refers to the informal discussions due to begin in Washington shortly). He added that China had paid her subscription. (Presumably this refers to 11 thousandth of 1 percent of its total fund quota and 11 thousandth of 1 percent of its total subscription to the bank). According to the Chinese Minister the estimated budget of the Ministry of Finance for this fiscal year represents an increase of 13 times over that of the preceding year.
Minister Yui conferred with local financial leaders this morning. He listened to reports by representatives of local banking circles and discussed with foreign financial leaders about the operations of foreign banks here.”

  1. Signed at Washington, December 27, 1945, T.I.A.S. No. 1501; or 60 Stat. (pt. 2) 1401.
  2. Representative in the United States of the Chinese Ministry of Finance and the Central Bank of China.