861.77/2131: Telegram
The Chargé in China (Ruddock) to the Secretary of State
[Received June 27—9:18 a.m.]
232. Discussions under way between Chinese and Russo-Asiatic Bank for issuance by the Railroad Board of Directors of bonds to cover debt of railway to China 5,000,000 taels plus interest totaling about $10,000,000, such bonds to be handed to China for such disposition as she wishes to make; also issuance bonds about $10,000,000 for sale open market as occasion requires and upon authorization Board of Directors. Total bonds not to exceed value of Eastern Railway. Negotiations Japanese loan to railway discussed in Reuter interview by Nagao, Japanese member of Technical Board, refuted by Bank and Chinese. Bank maneuvering to oust Latchinoff, vice president, Board of Directors, who is aligned with old Chinese party on railway, replacing him with more progressive man. Stevens fully informed. Mail report follows.9
- Not printed.↩