493.11/1617: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received March 15—8:25 a.m.]
My March 9, 6 p.m. Italian Chargé d’Affaires has now been instructed to negotiate with the Chinese Government for an understanding in regard to Italian Boxer payments and consent to the deposit of a year’s payments with the Italian bank on condition that said deposit will be used for the purchase of supplies in Italy. This means that Italy will grant the Chinese Government credits amounting to 1 year indemnity payments. Chargé has been instructed that he may negotiate in this sense provided British and American Governments are prepared to consent to postponement requested by Soong. My British colleague has informed his Government that the time has now come to consent to postponement. I, therefore, propose simultaneously with my British colleague to indicate that Department of [Page 613] State would not be disposed to raise any objection to postponement of payments of American share for 1 year from March 1, 1932, under express written assurance by the Chinese Government that the objects to which American payments are devoted would not be permitted to suffer. I am informed that last installment due of American indemnity has been paid.