The Ambassador in China (Stuart) to the Secretary of State
[Received April 2—12:09 p.m.]
600. Finance Minister8 confirms report of plan outlined paragraphs 2 and 3 Shanghai ConGentel to Department 702, March 27, repeated Embassy as 491, for issuance short-term Treasury notes. Details, however, still being discussed in Executive Yuan.
Regarding issuance stock shares on [in?] Chinese Government enterprises listed paragraph 4 reference telegram, Dr. Wong Wen-hao, chairman of NRC,9 states that agreement reached in concerned Chinese Government circles to permit issuance up to 50 percent of estimated value such assets (which would permit Government to retain control of enterprises) with details especially with respect to assessment of properties yet to be worked out. Wong frankly admitted he was not certain that this procedure to inspire public confidence in Chinese currency would be efficacious. He said, however, step designed in part make favorable impression on US Government order demonstrate Chinese Government’s desire to utilize its own assets as means to inspire confidence in currency and to withdraw large amounts of speculative capital from circulation.
Embassy will comment when further details available.
Sent Department as 600; repeated Shanghai 235.