893.9111 RR/5–2949: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received May 30—2:33 a. m.]
Cantel 498. Summary Press Report May 29 follows:
Usually reliable source states Nationalist Government within few days introducing currency reform replacing gold yuan. New currency to be silver dollars with silver yuan notes auxiliary currency freely [Page 783] convertible into coin. Tentative assurance Generalissimo indicated issue would be backed by gold-silver foreign exchange held by government at Taiwan and Amoy. High placed sources said more than 500,000 ounces gold held Amoy and considerable more Taiwan aggregate; stated sufficient cover war and Govenment expenses over one year. Since Shanghai accounted for 54 percent Government expenditures, same source said new currency could be introduced with fair measure of confidence.