893.51/2255
The Minister in China (Reinsch) to the Acting Secretary of State
[Received June 9.]
Sir: I have the honor to report that late in March, the Minister of Education requested the International Banking Corporation for an accom[m]odation loan of $300,000 for the purpose of assisting the Ministry in paying the salaries of the Government schools and the University in this Province. It is quite customary for banking institutions to make such accom[m]odations to the Government in the course of ordinary business. The matter was in due course brought to the attention of the Legation by the Manager of the Bank. On March 28th, I asked the Consul-General at Shanghai informally to mention the proposal to the chief delegates of the Peace Conference whom I desire to be kept informed as completely as possible concerning affairs of the Government. Mr. Sammons reported on April 2nd that Tang Shao-yi was not opposed as a matter of principle, but could not give public support to the proposition because of fear of establishing a precedent. Chu Chi-chien approved.
The negotiations between the Minister of Education and the Bank continued and the Bank finally agreed on April 24th to lend the Ministry $300,000 for one year, receiving, as security, a treasury note due April 24th, 1920 and the promise that the Customs’ surplus would be used for repaying the fund. The Bank informed the Legation of the conclusion of the agreement and received the assurance that its rights would be protected.
I have [etc.]