893.51/5092: Telegram

The Secretary of State to the Minister in China (MacMurray)

366. Your 792, October 25, 11 a.m.

It would appear that the Nationalist Government is being asked to perpetuate the policy of hypothecating specific revenues for the payment of specially designated obligations. If there is any likelihood that the Nationalist Government may do this, the Department questions whether the statement made by you to the Minister for Foreign Affairs under the authorization conveyed in the Department’s 351, October 16, 3 p.m., will sufficiently have safeguarded the interests of American creditors.
Under these circumstances do you consider the time opportune to take up with the Chinese Government the whole body of that Government’s financial obligations to American citizens? Knowledge of the attitude of the Chinese Government toward its debts to American citizens would become of great interest if American financial interests were to approach the Department in connection with a proposed loan. It is assumed that any international understanding between the bondholders and the Governments of all the various Powers concerned and the Government of China is out of the question.
The Department desires to receive from you by telegraph detailed recommendations regarding action that you think may advantageously be taken on behalf of the general body of American creditors of the Chinese Government.