893.51 Salt Funds/69
The Consul at Tientsin (Atcheson) to the Minister in China (Johnson)87
Sir: In reply to the Legation’s instruction of July 15th, concerning the release of salt funds for the payment of foreign loans secured on the salt revenue, I have the honor to state that I am now informed by the Foreign District Inspector at Tientsin that the undertaking given by the Shansi authorities in June with respect to funds earmarked for the foreign loan service in this salt district of Changlu and in the other three northern districts of Koupei (Kalgan), Chinpei (Taiyuanfu) and Hotung (Yuncheng) have not yet been fulfilled.
The Hukuang coupon was due for payment last month and the Foreign District Inspector states that he has spared no effort to claim and obtain release of the available quotas to the foreign banks in time. In his message to Marshal Yen Hsi-shan he states that he pointed out the political disadvantage which might accrue to the northern faction from defaulting on these foreign obligations with consequent harm to national credit, but although the Marshal’s reply was sympathetic and gave assurance that payment would be made when due, payment has been postponed, the delay in actual release being due, in his understanding, to a division of opinion in the Bureau of Finance as to the exact figures of the share in the obligations of the northern salt districts.
The Inspector added that his proposal to the Shansi authorities is to remit to London, against the receipt of the Tientsin or Peiping Branch of the Hongkong and Shanghai Banking Corporation, whatever amount of the fixed monthly quotas has now accumulated in the four northern districts, his contention being that this gesture, although the amount is less than the total requirement, will benefit Chinese credit as a whole.
Mr. Baude requests that the Legation render assistance by way of unofficial or personal advice to Marshal Yen’s Diplomatic Bureau but, in view of the Legation’s instructions of May 29 and June 14th, on this subject, I am informing him merely that I have reported the matter for your consideration.
I have [etc.]
- Copy transmitted to the Department without covering despatch; received August 28, 1930.↩