Foreign Relations of the United States, 1948, The Far East: China, Volume VIII

893.515/8–2048: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

Shanghai, August 20, 1948—5 p.m.
[Received August 20—6:41 a.m.]

1863. For Treasury and State from Casaday. Informally advised by Central Bank and Central Trust officials that inauguration new currency automatically abolished December 8 agreement as to payrolls, FBO⁵¹ and USEFC.⁵²

Assume until otherwise instructed future payroll and similar purchases local currency will be made by each individual post from local banks at now [new] official rate.

Preliminary view Shanghai office FBO is that private owners salable property will not be disposed sell for Sun currency so long as it remains inconvertible into US dollars either legally or on black market. Thus if black market disappears for a time, property acquisition may be expected virtually cease.

Sent Dept 1863, repeated Nanking 1469. [Casaday.]

Cabot

51. Division of Foreign Buildings Operations.
52. United States Educational Foundation in China.