893.516/693: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received 9:06 p.m.]
1027. My British colleague in a letter marked “immediate” informs me that the British Consul in Nanking has reported that the Finance Minister of the “Reformed Government” stated on October 1 that the new Chinese regime has decided to establish a new central bank and that the preparations therefor have been completed. Operations, it was said, are to begin in November. Craigie reports that, according to usually well-informed sources, the Japanese authorities have opposed the establishment of a new central bank whereas the project has been fostered by the Wang Ching Wei authorities. This information is similar to that contained in Nanking’s despatch to the Department No. 101, July 20, 1940.24 The British Ambassador proposes to make renewed representations, in the nature of an informal letter, to the Minister for Foreign Affairs and suggests that I may also wish to make informal representations.
Unless the Department does not approve of further representations on this subject or desires that representations be made in a form other than an informal letter, I propose, in view of the importance of this question, to write again to the Minister for Foreign Affairs and with reference to my letter of May 27, 194025 (Embassy’s despatch 4729, May 28, 194024) to the then Minister of Foreign Affairs, to point out that an official of the Chinese Government at Nanking has reportedly stated that a central bank of issue is to be established and to begin functioning next month. I would emphasize the importance of causing the authorities in China to refrain from proceeding with plans for the establishment of a bank of issue.
I concur in my British colleague’s opinion that speedy action is desirable and would therefore appreciate receiving the Department’s [Page 544] instructions as soon as possible. Shanghai and Nanking are requested to telegraph any available information on this subject.
Sent to the Department via Shanghai. Shanghai please repeat to Peiping, Nanking.