The Minister in China ( Schurman ) to the Secretary of State
[Received November 7—12:48 a.m.]
385. Your 293, November 4, 5 p.m.,73 my 383, November 4, midnight. In an interview November 2 with the Minister for Foreign Affairs he admitted Chinese authorities remiss in delaying settlement but objected to certain features of Stevens’ proposal particularly demand for wine and tobacco co-director with powers equal to Inspector General Customs, inclusion of funds for payment interest Hukuang bonds, American audit inland wine and tobacco revenue stations, which it would not be possible to carry out and finally, magnitude potential value of wine and tobacco security Americans wanted to control in comparison with smailness loan which besides would yield no new funds for Government. I said these were matters [Page 383] for adjustment with Stevens and urged strongly importance of prompt action to cure default and minimize injury to China.
I immediately had a consultation with Abbott and Stevens and reported as above.
Premier and Minister for Foreign Affairs, Minister of Finance and Minister of Communications met at 5 p.m. today to discuss loan for refunding Chicago Bank and Pacific Development Company loans after which confidential representatives of Minister of Finance called and conveyed the following message from him:
“Minister of Finance assures the American Minister that he is doing his utmost to secure the conclusion of a refunding loan in a mutually satisfactory form at the earliest possible moment. He expresses his desire to continue the negotiations with the Chicago Bank along the general lines of the Chicago Bank and Pacific Development Company agreements of 191974 in order to preserve the continuity of the transaction and thus disarm public opposition and avoid international complications.”
I think new Minister of Finance sincerely concerned in regard to refunding American loan. His representatives said this evening that though he had many urgent affairs he regarded this most important.