File No. 893.77/1527

The Secretary of State to Minister Reinsch


American Locomotive Sales Corporation advised by cable of desire of the Ministry of Communications to obtain four year loan of [Page 179] one million dollars upon security of total revenue. Mr. Muchnic states bankers disposed to make loan if security satisfactory. He requests your opinion of value of security, also confirmation of reported purpose of loan to complete Peking-Kalgan Railway extension.