893.515/6–349: Telegram
The Consul General at Tientsin (Smyth) to the Secretary of State
[Received June 4—10:24 a. m.]
378. Embtel 28, May 8, repeated Department 964. We avoided direct dealing with Communist authorities reference money. In early days new regime, we obtained local currency from local American firms at open market rate. This “borrowing” technically not illegal under then existing regulations. Money repaid in US by Department.
Since May 1, we have sold drafts to officially appointed banks who negotiate drafts without difficulty in accordance official procedure.
Small amount US notes turned into Bank of China before May 1 deadline. [Balance] burned instead of depositing with Bank of China as US dollar credit for we felt extension 40-day period such deposit unlikely; also impossible request extension without revealing amount on hand.
Procedure adopted Peiping (Peiping’s 835, May 13 to Department) impossible here as “possessing foreign currencies” after April 30 specifically prohibited and law strictly enforced.
Sent Department 378; repeated Nanking 228 and OffEmb Canton.