893.5151/5–2949: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received May 29—4:43 a. m.]
1885. Shanghai Military Control Commission May 28 proclaimed PB notes legal tender all liberated areas and required their use payment taxes, public, private transactions, debts, commodity prices, et cetera, as calculating unit; declared GY illegal but circulation permitted until June 5; fixed initial rate at GY 100,000 to PB 1; required commodity price conversions at fixed rate with no price increases allowed. Prior to May 28, all kinds debts, contracts and agreements must be converted to PB at first exchange rate.
Bank China authorized commence GY withdrawal May 30 at rates fixed by bank with details regarding rates, time limits and other procedural problems to be promulgated by People’s Bank. As further GY depreciation expected, PB exchange rate readjustment temporarily permitted in conformity with GY depreciation.
Sent Department 1885; repeated Canton 572, Nanking 1032.