an indication of the views of and the action, if any, contemplated by
the representatives of the other principally interested powers.
  In the absence of further instructions, Department does not desire
that protest in regard to this subject be lodged with the Chinese
Government.
                                                        PHJILT PS

893.515/345: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary
                            of State

                              SHANGH9M, October 24, 1934-4 p. m.
                                            [Received 9: 25 p. m.]
  512. The following are the regulations governing the newly estab-
lished Foreign Exchange Stabilization Committee as published Octo-
ber 23rd by Kuomin News Agency:
  " (1) This Committee shall be organized jointly by the Central Bank
of China, the Bank of China, and the Bank of Communications, in
accordance with the instructions of the Ministry of Finance.
  (2) This Committee shall have three members, one each designated
from the Central Bank of China, the Bank of China, and the Bank
of Communications. A chairman shall be elected by and from the
members and said election shall be duly reported to the Ministry of
Finance for record.
  (3) The daily equalization charge shall be fixed by this Committee.
  (4) This Committee, in order to meet the requirements of the market
may request Central Bank of China to buy and/or sell foreign ex-
change and gold or silver bullion with a view to stabilizing the foreign
exchange market.
  (5) This Committee may, in time of necessity, request the Central
Bank of China to import or export gold or silver bullion.
  (6) The proceeds of the equalization charge on the export of silver
shall be handed over to the Committee as a stabilization fund. Upon
instructions of the Ministry of Finance to the Inspector General of
Customs this fund shall be deposited in a special account with the
Central Bank of China.
  (7) The Committee may make use of the stabilization fund to meet
any loss suffered as a result of its operations. Should the fund be
insufficient to meet such loss, the Ministry of Finance shall be responsi-
ble for the deficit.
  (8) The Committee shall submit a confidential report of its accounts
monthly to the Ministry of Finance for record.
  (9) In case of necessity, the Committee shall transfer the required
number of staff members from the three banks to assist in its operations.
  (10) These regulations shall be effective upon approval by the
Ministry of Finance."
  2. Rule (5) would seem to justify the apprehension expressed by the
National City Bank that the Central Bank of China intends to export



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