893.5151/12–2848: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received December 28—11:14 p.m.]
2639. Comparative stability prices of past 30 days abruptly broken after Government suspended gold-silver sale December 24 pending revision measures governing such sales. Primary factor in suspension was complete disorder of mobs in Shanghai seeking to buy gold. General price levels Nanking and Shanghai up average about 50 percent over week ending December 20. Commercial circles attributed sudden price leap not only to suspension gold-silver sales which forces gold yuan into commodity financial black market but also to persistence peace rumors causing many Yangtze Valley merchants give up wait-and-see policy and become more active.
Premier Sun Fo21 reportedly attached much significance to recurrent price fluctuations and held meeting principal Cabinet members for discussion counter measures. Executive Yuan has not promulgated revised measures governing gold-silver sale, however, and Ministry Finance spokesman held December 27 that Government would not increase gold and silver sale price nor deposit formerly required as had been rumored.
[Here follows information on prices and import restrictions in China.]
Sent Department, repeated Shanghai 1320.
- Sun Fo’s nomination as President of the Executive Yuan was approved by the Legislative Yuan on November 26.↩