893.5151/3–1348: Telegram

The Ambassador in China (Stuart) to the Secretary of State

464. Central Bank of China official informs us in confidence that Bank’s US dollar reserves are “virtually exhausted” and only “some” gold and silver bullion reserves remain. Viewing recent sharp break in black market CNC2 rate and recent Government requests for advances US funds for petroleum and cotton purchases, we feel this report possibly true. However, we are not sufficiently well informed this subject to accept statement with confidence and recognize possibility it may be plan to increase pressure for early American financial assistance.

  1. Chinese national currency.