861.77/1995: Telegram

The Acting President of the Technical, Board ( Johnson ) to the Secretary of State

Referring to my cable of February 23, 6 p.m. March earnings slightly better but the Chinese directors forcing railway to make payments at variance with principle outlined in my telegram of February 23, 6 p.m.; it is clear that regardless of improvement in earnings financial condition will not improve under Chinese control. Russian reactionaries intriguing to create discord among the Technical Board of directors and railway in securing which, while unsuccessful, block constructive work. Railway creditors pressing railway so the Chinese directors are trying to arrange loan Chinese banks and if unsuccessful will turn to Japanese banks for help which the latter are ready to supply. General conditions so serious Railway Administration appealing to us for assistance. Unless something is done Technical Board cannot withstand above combinations much longer. Has the Department any information to give us on the subject?