893.51/5152: Telegram

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

499. Your 398 [198], June 15, 1 p.m., was repeated to the American Consul at Nanking who has replied as follows:

“June 20, 8 p.m. Sun Fo this afternoon informed me that the information quoted by you is substantially correct. Two-thirds of the proceeds of the remitted portions of the Italian, British and Russian Boxer indemnities—amounting to approximately $270,000,000 Mex. gross—will be set aside as a sinking fund to operate as security for a bond issue of 150,000,000 to be employed as follows: Canton-Hankow Railway 69,000,000; Lung-Hai Railway 87,000,000. The above was approved in writing by the Central Executive Committee on the 17th. Sun further stated there will be no preference as to nationality of materials necessary to be purchased abroad and that it has not been decided whether the bond issue will be domestic or foreign.”

MacMurray