893.515/11–3048
The Ambassador in China (Stuart) to the Secretary of State
[Received December 14.]
The Ambassador has the honor to enclose a copy of the text19 of “Revised Regulations Governing surrender of Gold, Silver and Foreign Currencies” as promulgated and made effective by Presidential Mandate on November 11, 1948.
According to these Regulations, people are permitted to hold gold, silver, silver coins and foreign currencies, but may carry on transactions only in silver coins and gold or silver ornamental articles; holders of gold, silver, silver coins and foreign currencies may, besides exchanging them for Gold Yuan Coins or Gold Yuan Notes at the Central Bank of China or its designated banks at stipulated rates, use them to purchase 1947 (36th Year) U. S. Gold Loan Bonds issued by the Chinese Government or deposit them in the Central Bank and use such deposits to pay for imports. Persons are permitted to carry out of the country 2 ounces of gold ornaments, 20 ounces of silver ornaments or foreign currencies equivalent in value to US$100; persons carrying gold, silver or foreign currencies into the country, should either exchange them for Gold Yuan Coins or Notes or deposit them with the Central Bank of China; tourists bringing in gold, silver, or foreign currencies may declare holdings before the Customs authorities, hand them over to the Central Bank for custody and reclaim them when they depart from the country.
These Regulations have, temporarily at least, had some effect in stabilizing commodity and monetary prices. They have, however, been severely criticized in that the very strict enforcement of the August 19 Economic Measures deprived the law-abiding and loyal middle class of its widespread savings of gold, silver, and foreign currency which were largely surrendered while these Revised Regulations have, strange to relate, protected wealthy holders of such assets, who are reported to have failed to surrender their holdings despite the government’s ruling to the contrary.
- Not printed.↩