The Minister in China ( Johnson ) to the Secretary of State
[Received July 30.]
Sir: With reference to the Legation’s despatch No. 156, of April 17, 1930, respecting the service of the Hukuang Railways Gold Loan of 1911, I have the honor to enclose a copy of a letter, of May 12, 1930, addressed to the Minister of Railways of the Nanking Government by the Railways Loan Group Banks,48 inviting attention to the amounts due in connection with the service of the loan, and again attempting to obtain a definite assurance that the claims of the Hukuang bondholders, under Article IX of the Loan Agreement, will be recognized as a charge upon the customs revenues in substitution for abolished likin.
Likewise enclosed is a translation of the reply, of May 24, 1930, from Mr. Sun Fo,48 Minister of Railways, to the above note, respecting payment of £141,273–16–0, for coupon No. 32 (June, 1927) of the British, French, and American issues and coupon No. 31 (December, 1926) of the German issue.
As for the suggested transfer of the service of the loan to the customs revenues, it will be observed that the Chinese Government avoids committing itself, on the ground that no definite arrangements have been made for the abolition of likin.
Copies of the above letters were furnished the Legation by Mr. A. D. Calhoun, of the National City Bank of New York, Peiping, who succeeded Mr. C. R. Bennett as the American Group Representative in Peiping. Further enclosed is a copy of Mr. Calhoun’s letter of June 19, 1930, to the Legation,48 in which he reports that the above-mentioned [Page 599] payment of £141,273–16–0, was received in London on June 3, 1930.
I have [etc.]
Counselor of Legation