893.51/8–1845: Telegram
The Ambassador in China (Hurley) to the Secretary of State
[Extract]
Chungking, August 18,
1945—11 p.m.
[Received August 19—1:49 p.m.]
[Received August 19—1:49 p.m.]
1394. To Secretary of Treasurer from Adler.
. . . . . . . . . . . . . .
Since Japanese surrender negotiations there have been heavy fluctuations [in prices], with grains and export commodities tending to gain or hold their own and other commodity prices falling sharply. Cotton textiles have fallen 40–50%.
- 4.
- U. S. dollar rate which had reached as high as 3400 on July 9 has fallen from 2500 in first week of August and quite sharply since [Page 1130] surrender negotiations, reaching a low of 1250 in Chungking on August 15, and recovering to 1400 on the 17th. In Kunming it is quoted at 1000. Rupees are selling at 400. Quotations for U. S. dollar backed savings certificates and bonds have fallen sympathetically but little business is being done. United Clearing Board rate was 1650 up to a week ago with little business transacted since.
- 5.
- Open market price of gold fell to $88,000 per ounce on the 15th but recovered to $102,000 on same day. Minister of Finance informs me that about 100,000 ounces have been delivered against past commitments since resumption of delivery. Half the takers paid the 40% tax in kind.
- 6.
- The money market is extremely tight with interest rates of 15 per month not uncommon. The failure of a number of Chungking native banks is expected. [Adler.]
Hurley