FO371-24687 — Page 85

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3.

will import materials from Japan, Manchoukuo and Meng-

chiang in order to absorb the bank notes issued by the

Federal Reserve Bank."

5.

It is impossible to believe that this statement

is more than partially true and that the bulk of the

issue of Federal Reserve Bank notes have been used

initially for purposes other than the expenses of the

military occupation.

6.

I am indebted to H.M. Commercial Secretary for

the information contained in this despatch.

I have the honour to be,

With the highest respect,

My Lord,

Your Lordship's most obedient, humble

Servant.

aalturon

(In the absence of H.M.Ambassador).

35

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