893.51/5660: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received June 4—5:10 a.m.]
603. 1. On May [March] 3rd the French and British Ministers and I addressed a joint note to the Minister for Foreign Affairs pointing out the fact that the National Government has not given effect to article 9 of the Loan Agreement of 1911 which provides that in the event of the abolition of likin required for the service of the Hukuang Railway loan of 1911, an equivalent first charge will be laid upon the increased customs revenues.
2. The Foreign Office in its reply May 6 confines itself to quoting the Ministry of Finance in the sense that “various claims submitted by bondholders must wait until a procedure for the adjustment of the various loans has been fixed, when they will certainly be handled collectively as promptly as possible.”
3. British Chargé d’Affaires in memorandum dated June 1st to the French Minister and me states that as Foreign Office reply makes no attempt to answer the question asked in the joint note as to how the Chinese Government proposes to implement the undertaking given in article 9 of the original loan agreement of 1911 he suggests that the attention of the Chinese Government be once again drawn to this undertaking. The British Chargé d’Affaires proposes a draft note, pertinent portion of which is as follows:
“The question of the establishment of a procedure for settlement of all obligations of the Chinese Government in arrears is entirely distinct from that of the undertaking given in article 9 of the loan agreement which concerns the specific security upon which this particular loan is charged. The undersigned representatives must, therefore, again invite attention of His Excellency, the Minister for Foreign Affairs, to this definite undertaking in the loan agreement and request that they may be acquainted at an early date for the information of their Governments with the intentions of the Chinese Government in regard to its implementation.”
4. The Legation respectfully requests the Department’s authorization to join [in this?] note, the British Chargé d’Affaires desires to forward the note under date of June 10th if my French colleague and I are prepared to sign by that time.