The Secretary of State to the Continental Illinois Bank and Trust Company, of Chicago
Sirs: The Department has received your letter of April 29, 1930,34 in which, in connection with a report that the Government of China intends to abolish likin and similar taxes from October 10, 1930, you referred to a loan made to the Government of China by the Continental and Commercial Trust and Savings Bank (Continental Illinois Bank and Trust Company, Chicago, successor thereto) under an agreement35 in which the Chinese Government declared that the Treasury notes evidencing the obligation are a direct charge on certain revenues of certain provinces of China “whether such receipts be in the nature of Likin Taxes, Transportation Taxes, or other taxes or imposts of like nature”.
You state that the Chinese Government has defaulted as to both principal and interest of the loan and you request the Department’s assistance “to prevent the threatened destruction of the security” on which the loan was made.
The Department had previously requested that the American Minister to China investigate and report upon the possibility of entering into negotiations with the Chinese Government for the settlement of outstanding debts and claims held by American citizens. A copy of your letter under acknowledgment is being sent to the Legation at Peiping and the American Minister is being asked to consider it in connection with his investigation above mentioned. The Department will not fail to give attentive consideration to the matter and will communicate with you again upon the receipt of a report from the Legation.
Very truly yours,
Chief, Division of Far Eastern Affairs