§ 49. Sir John Wardlaw-Milneasked the Secretary of State for Foreign Affairs whether he can make a statement on the currency position in Shanghai and the Yangtze basin, having regard to the competition of the fapi (Chinese national currency), the extensive note issue of the Japanese military authorities, the Huahsing notes issued by a Japanese-controlled bank in Shanghai, and the new notes recently issued by the Nanking Puppet Government; and what are the reactions on foreign trade of these four conflicting currencies in the same district?
§ The Under-Secretary of State for Foreign Affairs (Mr. Butler)My right hon. Friend is aware that the different currencies mentioned by my hon. Friend are circulating in Central China, the latest addition being the note issue of the Central Reserve Bank established by the Japanese sponsored regime at Nanking. It is too early to forecast what effect the latter will have on the currency and trade situation, but every attempt to supplant the national currency of China cannot but do some further harm to the interests of all countries trading with China.