893.51/4945
The American, British, and French Ministers to the Chinese Ministry of Foreign Affairs 23
The Undersigned, the British, French and American Representatives, have the honour to acknowledge receipt of the memorandum from the Wai Chiao Pu of March 5th on the subject of the default in the Hukuang Loan service, and to point out that this matter appears to be insufficiently dealt with by a mere repetition of the statement by the Ministry of Communications that they are unable to provide the necessary funds and have referred the matter to the Financial Readjustment Commission in connection with the utilisation of the increased Customs revenues resulting from the raising of the import tariff. While the undersigned Representatives trust that security for the loan service will in due course become available in accordance with the relevant provisions of the Loan Agreement from the Customs revenues after the raising of the import tariff, they do not consider that the prospect of this eventual solution warrants any abatement of effort on the part of the Chinese Government, in the interests of their credit and good faith towards the bondholders, to meet the service of this important international railway loan contracted fifteen years ago from existing sources of revenue. The Undersigned Representatives therefore request that, failing the provision of funds from other sources including those specifically indicated in the Loan Agreement, and failing the enforcement of the provision in the Loan Agreement for the administration by the Maritime Customs in the interests of the bondholders of the provincial revenues charged with the service of the loan, the Ministry of Finance will immediately make the necessary funds available from the existing Customs revenues.
- Copy transmitted to the Department by the Minister in China as an enclosure to his despatch No. 633, June 11; received July 14.↩