893.51/3465a: Telegram

The Secretary of State to the Chargé in China (Ruddock)

173. Your 173, May 3, 5 p.m. You will again invite the Chinese Government’s attention to its default through failure to complete [Page 393] the terms of the Pacific Development Loan contract of November 26, 1919, more particularly Article 10 thereof by giving the American Associate Inspector-General of the Wine and Tobacco Administration “no less degree of authority than that heretofore given by the Chinese Government to the Associate Chief Inspector of the Salt Administration of China.” In this connection see Department’s telegram No. 158, June 29, 4 p.m.83 In presenting this matter to the Chinese Government you will remind it of the early maturity of the bonds issued under the Pacific Development Corporation loan which are secured by the taxes in question and the unfortunate effect that any failure on the part of the Chinese Government to fulfill the terms of its contract with the Corporation in question, will have upon Chinese credit in the United States.