893.516/673: Telegram
The Acting Secretary of State to the Ambassador in Japan (Grew)
Washington, May 2, 1940—7
p.m.
141. Your 290, April 27, 3 p.m.
- 1.
- The Department authorizes you, in your discretion, to make an approach in regard to the subject under reference to the Japanese Foreign Office in such manner and form as you may consider appropriate.
- 2.
- The Department’s 129 of April 25, 6 p.m.,89 was not intended to supersede its 127 of April 24, 7 p.m., but to communicate to you information pertinent to your consideration of its 127. Accordingly, the Department would welcome in conjunction with your report on action taken in response to paragraph 1 above any suggestions that may occur to you in regard to possible further action which might be helpful toward dissuading the Japanese Government from proceeding with any plan for a new bank and a new currency in central China.
- 3.
- For your information, according to Shanghai’s 281, April 6, noon90 (a Commercial Attaché telegram which was not repeated to you), the Japanese Minister of Finance on March 31 stated that a new currency would be established sooner or later in central China under auspices of the Nanking régime. In another Commercial Attaché telegram, Shanghai’s 312, April 16, 11 a.m.,91 it was stated that the Nanking régime on April 12 promulgated regulations governing the formation of a preparatory committee for organizing a central bank and that the committee had been empowered to draft plans for the issuance of the new currency and in regard to the functions of a central bank. It may also be noted in this connection that it would appear from Shanghai’s 291 of April 10, 3 p.m., to the Department91 that Japanese businessmen and civilian officials at Shanghai would be inclined to disfavor the institution in central China of a new currency.
Please mail code text to Shanghai.
Welles