Office of the Historian

893.51/6–445: Telegram

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

Chungking, June 4, 1945—8 a.m.
[Received 1:07 p.m.]

907. With further reference to so-called gold scandal case (ReEmbstel 855, May 27, 9 a.m.), it now seems fairly certain that O. K. Yui will be charged with responsibility and dismissed from post as Finance Minister. Kwok, manager of business dept. of Central Bank, is reliably reported to have resigned May 28 on pretext of illness after being placed under CN dollars five million bail by court. Action on Yui reportedly taken at recent CEC76 meeting with formal announcement of his dismissal expected soon.

In general connection with charges of dishonesty in high quarters arising from gold scandal, it will be observed that thus far Govt, has not issued any statement showing proportion of March 28 gold sales (which reportedly totalled 21,447 ounces against 10,815 ounces sold March 27) alleged to have been made as a result of leak. Govt, spokesman April 18 states that increase was “not remarkable” and not nearly so large as increase during last 2 days of February, sales Feb. 27 and 28 amounting to 9,060 and 38,991 respectively.

The action reportedly taken against Yui and Kwok appears to be tied up with intention of T. V. Soong,77 presumably with Gmo’s approval, to remove appointees made by H. H. Kung from high official position.

Hurley
  1. Central Executive Committee of the Kuomintang.↩
  2. Dr. Soong became President of the Executive Yuan on May 31. He retained his position as Minister for Foreign Affairs until July 30.↩