"China is certain that the Amer-tean Government desires to avoid faction that might aggravate present Jconditions, and therefore would apredate assurance that the American Government will refrain from action that might cause continuation of the present silver drain from China and Accordingly will ce-operate to. prevent further rise and to. maintain stability of silver which the London agreement contemplated. Indeed from China's viewpoin®, the' stabilization level should be somewhat lower than the present price.
"The National Government feels obliged actively to seek means of It considers that China not alone maintain the silver fandard and is considering gradual troduction of a gold-basis currency which would necessitate acquiring fold. Since the American Goverament desires an increasing proportion of silver in monetary' reserves, the National Government desires also willing to exchange with the Chinese Government gold for silver."
Paraphrase of Instructions to Minister Sze, October 1, 1934: china is " gratinea "xt "te!
"Plesse at once that
American." Government recognises the unfortunate effects which excess: sive silver prices would have, and would appreciate the earliest practicable reply to our telegram September 23 in order to assist deciding China's policy to meet the potential serious monetary situation resulting from the present rise in silver price and silver drain. American co-opera tion to prevent further silver price rise and to maintain stability as contemplated by the London agreement! is particularly vital to China, In this connection, point out that rising silver discourages commodity exports thereby impairing China's purchase power for imports. "Also desire reply to inquiry regarding exchanging silver for gold.
Text read from the printed page and cleaned; old type leaves the occasional error.