 Then, on 3 November 1935 the Nationalists undertook a currency reform with British support and introduced the new silver standard and currency management system, but upon recalling the old currency they confronted more separatist tendencies when the Japanese-backed military leaders of north China refused to hand over the silver.The Japanese army feared that the currency reform would strengthen of the Chinese government's economic control over north China, and they made efforts to establish a pro-Japanese puppet government in Hebei and Chahar.However, because the Japanese encountered strong resistance from the Nationalist government and because various Chinese military leaders failed to respond to their invitations, on 25 November 1935 they established as a provisional measure the East Hebei Autonomous Council, a government under Yin Ju-keng that would have jurisdiction over an area of Hebei Province demilitarized by the Tanggu Truce.