893.5151/10–546: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received October 6—1:45 a.m.]
1602. From Adler to Secretary of Treasury. Late on evening of October 4, T. V. Soong sent for me and showed me a message he had just received from Pei (re paragraph 3 Embtel 1589 of October 4) which reported that:
- a.
- Shanghai open market for US currency had suddenly become nervous again on afternoon of October 3.
- b.
- Navy had informed Pei that his request from Navy for 3 million US currency in new 20 dollar notes had been turned down in Washington.
Pei’s cable concluded with urgent appeal to Soong for aid in getting request approved so that Central Bank could acquire $300,000 in new 20 dollar bills from Navy in Shanghai immediately and the balance by air. Soong emphasized urgency of request to me, adding that Chinese authorities had done everything possible to cooperate with Navy. He would greatly appreciate Treasury’s supporting Central Bank request.
2. Fact that Central Bank is intervening in Shanghai note market has probably leaked, which partially explains market’s renewed weakness. [Adler.]