893.515/1106: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received June 8—10:15 a.m.]
316. Reference Department’s telegram No. 154, June 5, 7 p.m. There is little information available here in regard to South China currency situation. Canton business is usually done through Hong Kong. Transactions in Canton exchange are small in Shanghai. Bank of China transactions over the counter only and for accommodation of customers. Rates recently subject to wide fluctuation and no local desire to buy Canton exchange.
Understand that discussions thus far between National Government and Southwest authorities have not produced tangible results. Will report again when further information obtainable. It is rumored in Shanghai that British Government recently started to purchase by Hong Kong and Shanghai Banking Corporation of large amounts of silver from Southwest authorities.