JAPANESE DECISION

Gisborne Herald, Volume LXVI, Issue 20077, 25 October 1939, Page 7

JAPANESE DECISION

BREAK WITH STERLING

SEQUEL TO WAR

CONTROL OF EXCHANGE

(Kloc. Trl. Copyright—United Press Assn.) j (Reed. Oct. 25, 9 a.m.) LONDON. Oct. 24. ;

Messages from Tokio state that the j Japanese Ministry of Finance has an- 1 nounced it has abandoned the historic ! yen-sterling link, due to the expecta- I tion of a prolonged European war | and the British, strengthening of tiie j exchange control. From row or, the ; yen is to be linked with the Ameri- j can dollar, based on the dollar selling j rate of 23 and seven sixteenths. j A New York message states it is understood that Japanese banks had difficulties with the British Treasury

in efforts to obtain exchange transactions in New York. The bulk of the j Japanese banks had large holdings of j sterling in (London at the outbreak j of the war. A Japanese informant | said in New York that the change in | policy and important terms of the i Japnno-Americaa relations meant ■ that Japan hoped to continue close \ economic relations with the Urn tea 1 States and was prepared to recog- j nise New York instead of London as the financial capital of the world