File No. 893.811/198.


The Chinese Government has inquired about the likelihood of the Huai River conservancy loan being consummated before January. They are desirous that this necessary improvement should not be delayed. I have the honor to mention that the Siems-Carey Company, about to begin business in China, are ready to undertake the construction work and that the National City Bank of New York might be induced to assist in financing. Possible Rockefeller Foundation or Carnegie Endowment might make the initial investment in bonds considering the safeness and humanitarian purpose of the loan.