893.5151/7–1549: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received July 18—6:47 a. m.]
Cantel 744. According Ministry of Finance conversations, silver yuan certificates ostensibly holding line with demand redemptions nominal and general circulation small especially interior. Hong Kong dollars still predominant medium exchange Canton area with no apparent effort authorities enforce illegality measures.
Yuan certificates presently discounted around 5 percent open market. BM rate silver dollars few cents above today’s official rate of 1.55 to US dollars 1.
Evident concern Central Bank silver needs as Army pay causing enormous drain available silver dollars. Govt employees expected paid yuan certificates next pay period.
First Philadelphia coins airlifted Hong Kong–Canton this week but additional foreign silver purchases imperative if currency is to hold line. Ministry of Finance admittedly still has no visible foreign exchange available this purpose.