493.11/1598: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received February 9—9:55 a.m.]
I have just received a personal letter from the Minister of Finance, dated February 8th, in which he states that customs revenues having fallen off by one-third in the past few weeks he requests me to use my personal good offices with the United States Government in favor of the following proposal which he says will reach me shortly through the Minister of Foreign Affairs:
“The National Government of the Republic of China, in view of the increasingly grave economic difficulties which during the past few weeks have been reflected in a drastic fall of customs receipts, proposes the postponement during 1 year from February 1, 1932, of the payment of the American, British and Italian portions of the Boxer Indemnity.
The local [National] Government points out that the various objects to which these portions are being devoted, and which it is emphasized are objects for the benefit of China, would not suffer, since the several indemnity commissions have in hand sufficient accumulated funds to cover the requirements of the next year. Also these portions of the indemnity are not pledged for loan service as are other portions.
[Page 609]The payments proposed to be postponed would be made in the year following the termination of the annuities as now scheduled.
A similar note is being addressed to the other two Governments concerned.”