893.51 Contractual Obligations/19: Telegram

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

15. Your No. 3, January 3, 6 p.m.

My view is the same as that expressed in paragraph 1 of the Department’s telegram although no details in regard to real plan of Chinese Minister of Finance are available as yet.
It is my understanding that Chinese Ministry of Finance desires that we present as complete a list of outstanding obligations of a contractual nature as possible with statements of sums due. Ministry of Finance has apparently worked out such statements for its own account but asks that we present our case first.
I have been able to learn little in regard to the attitude of other Governments on this matter. Those with whom I have talked have indicated that they sent home the memorandum of the Chinese. Government and that in each case the Governments are preparing statements for submission to the Chinese Government with a view to taking the next step which will be to discover the actual nature of the proposal which the Chinese Government has in mind for the liquidation of unsecured [Page 1036] and inadequately secured contractual obligations. I shall make inquiries and communicate such information as I am able to obtain later.
I consider that it would do no harm for me to address a communication along the lines indicated in paragraph 4 of the Department’s telegram to Dr. Wang Chung-hui, the President of the Commission, sending a copy to the Minister for Foreign Affairs and I shall do this now.
I am not in a position at this moment to express an opinion on the matters included in paragraph 6 of the Department’s telegram but I believe that Chinese Government would give consideration to this proposal and I shall take it up with the Foreign Office on my next visit to Nanking which I expect to make about the first week in February.