893.51/5283
The Chinese Minister for Foreign Affairs (C. T. Wang) to the American Minister in China (Johnson)25
Sir: I have the honor to inform you that I am in receipt of a note from the Ministry of Railways, stating:
“Yen Hsi-shan26 has instructed the Managing Director of the Shihchiachwang-Ts’angchow Railway to float loans from foreign firms in the name of the Railway for defraying the payment of his soldiers, and is willing to include in the loan agreement the privileges of joint operation over coal and iron mining enterprises in Shensi and Shansi Provinces. You are requested to address separate formal notes to the foreign Ministers announcing in advance the repudiation of any such loans.”
I also received a report from the Executive Committee of the Shanghai Special Municipality stating that Feng27 and Yen are floating loans from foreign merchants giving as security the income of the Chengting-T’aiyüan Branch Railway.
I have the honor to refer to a previous declaration that foreign loans shall not be valid until they have been considered and approved by the National Government. The Chinese Government will not recognize any foreign loans which Yen Hsi-shan and others are planning to float in this instance, regardless of what names they use or what security they give on government-owned enterprises or property. I have the honor, Mr. Minister, to indite this formal note for your information, and to request that your residents and merchants in China be instructed not to be misled, in order to avoid future trouble. It is also requested that I be favored with a reply.28
Minister for Foreign Affairs of the Republic of China
Seal of the Ministry of Foreign Affairs
- Copy transmitted to the Department by the Minister in China in his despatch No. 200, May 13, 1930; received June 18.↩
- Commander in chief of the forces in Northwest China in opposition to the Government at Nanking; long-time Governor of Shansi Province.↩
- Marshal Feng Yu-hsiang, deputy commander of the Northwest forces and leader of the Kuominchun (National armies).↩
- The Counselor of Legation in his reply dated May 8, 1930, merely acknowledged the receipt of this note.↩