102.1/10–2847: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received October 28—3:44 a.m.]
2147. To Treasury from Adler. Following UP story under Nanking dateline October 24 appeared in Shanghai English language press October 25:
“Vice Foreign Minister George Yeh, commenting on Mexican Treasury Secretary Ramon Beteta’s statement that Mexico soon may coin silver money for China, declared no negotiations were in progress on this matter. He added that the Chinese Government has made no formal inquiry with the Mexican Government on the possibility of such arrangements.
Asked whether the Chinese Government is interested in investigation the possibility, Yeh said, ‘We know what the possibilities are since we have looked into the matter on previous occasions.’
Beteta indicated in a statement at St. Louis that Chinese dollars would be made in Mexican mints as soon as an agreement is signed. He also claimed conversations in the matter were underway when he left Mexico last week. In Shanghai, banking offices told the United Press that China investigated the matter several months ago and disclosed China was then seeking a $346,000,000 United States silver loan. They said the matter of silver coinage has now become a ‘closed subject’ since it was believed that China would be ineligible as a member of the International Monetary Fund and World Bank if a silver standard were adopted.
The first silver coins circulated in China were Mexican dollars, contained a fractionally higher silver fineness than the ones minted by the Chinese Government later.”
Stuart