893.51/4937
The American Group to the Secretary of State
[Received June 23.]
Hukuang Railways Loan
Sir: Referring to our letter of June 15th28 transmitting texts of various cables relating to the receipt of funds from China to apply on the service of this loan, we hand you herewith for the information of the Department copy of a further cablegram (No. 4759) received by us on June 18th from London.28 In accordance therewith we have announced that beginning Thursday, June 24th, we will pay coupons from bonds of the German issue of this loan which matured June 15, 1920 and June 15, 1925. We also enclose copy of a letter dated June 2nd from Messrs. Morgan Grenfell & Co., London, transmitting to us text of a legal opinion obtained by the Hongkong & Shanghai Banking Corporation regarding the liability of the Chinese Government to pay interest on drawn bonds until such bonds are finally redeemed.28 We deem this opinion of considerable importance.
Respectfully,
For the American Group