893.51/3974: Telegram

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

233. Your 375, September 21, 2 p.m.

Department is finding it increasingly difficult to explain to American creditors of the Chinese Government the ability of that Government to find funds with which to make payments such as you describe and at the same time fail to make any payment on defaulted loans to Americans, or provision for such payments.

You may so inform the Chinese Government and say, in addition, that this Government would be glad to receive a statement containing a definite plan on which this Government can rely for the liquidation of the over due obligations.