893.51/3370: Telegram

The Secretary of State to the Minister in China (Crane)

124. Another semi-annual installment of interest on Continental and Commercial Bank 6 per cent loan of 1919 will be due on May 1 and to protect credit of Chinese Government in this country banks suggest that Chinese Government should make every effort, and if necessary every sacrifice to pay this interest charge on or before May 1. This is most essential in order that the Continental Bank may say to investment houses that the Chinese Government met the May 1 interest charge promptly and without assistance from the Bank. Bank states that if the Chinese Government should default in the payment of this interest as it did on the last interest installment it will further seriously impair that Government’s credit in this country. Please inform Chinese Government.