The Archive · 1938

Japanese to Suffer If Local Money Drops Tokyo Government Not

To Peg Hankow Notes

Tokyo, Apr. 5.

Although depreciation of the Chinese Nationalist Government's currency will severely hit Japanese merchants in Shanghai, the Japanese Government will take no step that might peg' it, the Finance Minister, Mr. Okinori Kaya told members of the Cabinet's "brain trust" this morning.

"The fall of its currency means an incomparably greater loss, and possibly a crushing blow, to the Hankow Government. Therefore, the Japanese Government will leave the Chinese currency to its natural course and will take no half-way measures calculated to peg it," he said.

Regarding the Shanghai Maritime Customs, Mr. Kaya said "various difficulties involved make early settlement doubtful."—Domei,

Text read from the printed page and cleaned; old type leaves the occasional error.

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