Reel 17427 - Page 1708

Dublin Core

Title

Reel 17427 - Page 1708

Description

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Character Count: 1929
Word Count: 332

Source

https://image-uab.canadiana.ca/iiif/2/69429%2Fc0v698759q3t/full/max/0/default.jpg

Date

1941/1945

Rights

Public Domain

Format

image/jpeg

Language

fra

Text Item Type Metadata

Text

#

## 24: Shanghai (DUVAL)

Peking
August 1944
FAD
\#436 - \#441 x (6-part message complete)
${ }^{\text {a }}$ By Your telegram $\# 311^{\text {b }}$ of 1 August -- 3M-
inform me as to the new Chancellery rate in force from 1 June.
${ }^{a}$ It is to be feared that the French Government because of the enormous expenditure already caused by suoplying its services in China, will not hesitate to adopt an automatic system for fixing the Chancellery rate.

In fact, the French Government buys CRB dollars which it needs for the Japanese Government at the fixed rate of $1.8 \beta$ through special Tokyo yen. By doing this the South China supply which costs about $2 \beta$ million france a quarter in 1942, will cost $24 \beta$ million for the current quarter, and according to all probability in view of the present onrush of inflation, it is to be expected that the actual purchase value of CRB dollars will fall below one centime. Must if follow then, that the supply for South China will cost the state more than four billion france?

Up to this point the Government could consider it advantageous to utilise the credits which Indo-China possesses in Japan in order to defray the expenses of French services in China. Will the advantages of this method of payment continue if these assets must be reduced in enormous proportions, or even exhausted, by the inescapable effect of the two factors indicated? I refer to:

1. The purchase rate for CRB dollars fixed by the French Government.
2. The indefinitely increasing mass of this currency which the monetary breakdown is going to require for the settlement of our expenses in China.

If the present situation, as must be expected, continues to grow worse, these charges, which normally should have formed only a relatively small part of the state expenditures, are going to be an extremely disturbing burden on the credits which the Government has at its disposal in Tokyo.