893.51/3664: Telegram

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

473. Your 337, December 22, 6 p.m. Have made representations oral and written to Minister for Foreign Affairs and oral to Premier. Premier recognizes grave consequences of default and will take up matter with Minister of Finance. Learn from Ministry of Finance Minister intends resume refunding loan negotiations through Hsun Tuen [Hsu En-yuan?] when latter recovers from temporary indisposition.

Have especially requested me to telegraph Department soliciting our support for Chinese proposal to increase customs tariff to 7½ percent pending tariff revision and state loan thereupon would be used to care unsecured foreign and domestic loans. I expressed sympathy in principle with China’s desire to increase customs tariff.