861.77/2177: Telegram
The Secretary of State to the Chargé in Japan (Bell)
123. Department’s No. 111, July 15, 6 p.m. Chinese Government has replied:24
“1. As to cooperation. The Chinese Government still respects, as heretofore, the Inter-Allied Agreement about the Technical Board [and agrees to cooperate with the Technical Board] to the utmost of its ability. 2. As to the bond issue. Owing to the increase of revenue of the railway in comparison with preceding periods, it is not necessary for the present to put out an issue of bonds. There is no change in the policy of the Chinese Government with regard to the Chinese Eastern Railway.”
Repeat to Stevens and Peking and ask Stevens:
“Is Chinese statement in accord with your ideas, namely, that no issue of bonds is necessary at present? If loan is necessary what [Page 598] recommendations do you make regarding size of loan, terms of bonds, and security for loan which would be principal factor in the event of flotation?”
- Memorandum from the Chinese Legation, dated July 23, not printed. The bracketed words appear in the memorandum, but were omitted in this telegram.↩