Foreign Relations of the United States, 1948, The Far East: China, Volume VIII

893.5017/11–148: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

Shanghai, November 1, 1948.
[Received October 31—9:33 p.m.]

2276. Chinese Government altered entire plan for control economy initiated August 19. Prices essential commodities and daily necessities unfrozen. This includes raw materials. Wage of workers to be readjusted with reference to needs. Public utility rates to be increased in keeping with costs operation.

Government agency to revamp prices cotton yarn, cloth, sugar, coal and salt on basis prevailing costs. Foodstuffs to be purchased and sold at open market prices. Rationing program 6 major cities to be continued. Details follow by airgram.⁹⁹

Department 2276, repeated Nanking 1725.

Cabot

99. Airgram No. A–974, November 1, not printed. In telegram No. 2048 of the same date, the Ambassador summarized actions taken by the Executive Yuan on October 31 and predicted that the “gold yuan henceforward will duplicate CNC toboggan.”