893.51/5550: Telegram

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

472. Reuter reports from Shanghai 29th:

“T. V. Soong, Minister of Finance, published warning this afternoon that bonds secured on customs revenue issued by Canton rebels will not be recognized in any way by the Government as having claim on national funds. Statement points out that Canton rebels in proposing to issue premium bonds secured on the additional customs duties are not only infringing upon integrity of the customs service but are usurping recognized rights of bondholders of foreign and national obligations. It is emphasized that these obligations are secured on the customs revenue as a whole and not on any specific part of it.”