FO371-24687 — Page 110

Page 110

Page 110

2

58

country, and requested Your Excellency's predecessor

to give me such information as was available on the

subject.

Unfortunately I have not yet been apprised of

the views and intentions of the Japanese Government

and authorities in this matter. On the other hand, I

have received from official and unofficial sources

further reports to the effect that this bank is to be

established and to begin functioning within the rela-

tively near future. It has been reported, for example,

that an official of the governmental organization

established at Nanking stated early this month that

the decision had been reached to establish a new cen-

tral bank and to have this bank issue its own bank notes.

In view of these reports concerning the estab-

lishment of such a bank, I am impelled to invite the

attention of Your Excellency to my note of May 27, 1940,

to the then Minister for Foreign Affairs and to express

the view of my Government that the establishment of a

new so-called central bank and the issuance of a new

currency would result in serious discrimination against

and resultant detriment to the trade and enterprise of

third powers in China. It is hardly necessary for me

/to

Page 110

Page 110

Page 110Page 111