893.515/339: Telegram
The Chargé in China (Gauss) to the Secretary of State
[Received October 18—6 a.m.]
473. Reference Shanghai’s 498, October 16, 7 p.m.,32 following from American Consul General at Shanghai October 17, 4 p.m.
“1. The chairman of the Shanghai Foreign Exchange Bankers Association under date October 15th has circulated to its committed banks the following:
I am today informed that the Central Bank of China intends to ship silver, presumably free of duty, and has announced that the shipment is to be made for patriotic reasons and to support the market.
Shipments of silver by foreign bank[s] have been virtually prohibited by the new export duty, and I suggest that members make representations through their respective consulates to ensure that the new regulations are made applicable to all banks Chinese as well as foreign.
The duty was imposed on the plea that further shipments of silver were detrimental to China, and I consider it advisable that Chinese be requested to give an assurance that no shipments will be allowed to be made unless full duty is paid.’
2. The National City Bank has requested that a strong protest be registered insisting that the new silver regulations if put into force be made applicable to all banks Chinese as well as foreign or that no shipments will be allowed to be made unless the duty is paid. The proposal is a clear discrimination against all banks other than the Central Bank of China. This office has had no opportunity to investigate regarding the statements made in the Foreign Exchange Bankers Association letter but instructions are requested as to what action this Consulate General should take in the event that facts support this statement.”
Following instruction has been sent in reply:
“October 18, 4 p.m. Your October 17, 7 [4?] p.m. The Legation considers that the matter is one in which no action should be taken except on instructions of the Department. Your message is being repeated to the Department. When you have completed your inquiries please inform the Department as well as the Legation.”
- Not printed.↩