493.11/1635: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received May 27—3:50 a.m.]
570. Department’s 128, May 20, noon. Following from American Consul General at Nanking.
“May 25, 6 p.m. Called on Vice Minister Hsu Mo May 24, 5 p.m., and informed him that proposed postponement could not be effected unless ‘complete’ were omitted from the note of April 27. The Vice Minister pointed out that the object of the Chinese Government in asking for the postponement was to allot the indemnity funds to other purposes; that the institutions hitherto supported by the indemnity would be maintained but on a restricted basis and that the assurance against ‘complete interruption’ was so phrased in order to avoid anything which might savor of misrepresentation. He pointed out also that if the indemnity payments were to be devoted to the same purpose as hitherto the Chinese Government would obtain no additional funds and nothing would be gained by the postponement. He said that funds from other sources would be assigned to the institutions supported by indemnity payments but on a reduced basis and he inquired whether the views of the Department would be met if the passage in the note under discussion were to read ‘will not be permitted to suffer interruption, and may be curtailed’. I said that having delivered your instruction (see your final paragraph) I could only refer his inquiry to you. I intimated that the situation might be clarified if he could describe just what arrangements had been decided upon for the support of the indemnity body. He said he could not, but that the Minister of Finance could and that probably he would be in Nanking in a day or two. Is it your desire that I interview T. V. Soong on this point when he comes? Y. C. Mei of Tsing Hua [University] and Chiang Mon-lin of the Peiping National University have both been in Nanking in connection with the proposed postponement and I have been informed, but I cannot con-rm, that the apprehensions of those institutions were removed.”