893.515/1302: Telegram

The Ambassador in China ( Johnson ) to the Secretary of State

204. Following third person note dated April 12 has been received from Ministry of Foreign Affairs (translation):

“The Ministry of Foreign Affairs has received a report stating that the so-called ‘Federated Reserve Bank’, organized and established by the bogus organization in North China, is hastily printing bogus bank notes amounting to $300,000,000 for the purpose of exchanging them into legal bank notes of the Central Bank of China, the Bank of China, and the Bank of Communication[s]. It is ascertained that the bogus ‘Federated Reserve Bank’ is purely a type of illegal organization, the object of which is to disturb the Chinese currency. It is injuring [injurious] not only to the Chinese people, but also adversely affects the trade of all countries in China. The said type of bogus banking [banknote] is absolutely invalid within China, and the Chinese Government in future will not assume any responsibility for its exchange and adjustment. The Ministry requests the American Embassy to notify all American residents in China thereof.”

Repeated to Peiping and Shanghai.