493.11 N 15/206: Telegram
The Secretary of State to the Chargé in China (Perkins)
Washington, September 17,
1928—4 p.m.
315. Your 704, September 13, 4 p.m. In passing on claims the Department considers that:
- 1.
- As to value to be used as measure of damages to be assessed, this is a question that should be settled by the Commission after taking the circumstances involved in each case into consideration. The Department’s view would be that generally the actual value of property at time of loss as nearly as may be ascertainable should be used.
- 2.
- Interest on the amount of the award is a proper charge against the Nationalist Government. Just compensation would require the payment of the normal commercial rate obtaining at the time the loss occurred. However, in view of possible difficulty in ascertaining such rate or rates for different classes of transactions Department considers that a uniform rate of 5 percent would be equitable. Interest should be computed from date of loss to date of payment.
- 3.
- The Department perceives no objection to the plan suggested with respect to the payment of awards in Mexican or United States currency.
Kellogg