493.11/1641: Telegram

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

774. Department’s 142, June 4, 2 p.m.

1. The following is essential portion of English translation prepared [Page 620] by the Ministry of Foreign Affairs of its reply to telegram of April 14th.

“With reference to Your Excellency’s observations concerning the cultural work which is being supported by payments of the American share of the indemnity, I have the honor to assure you on behalf of the National Government that the cultural objects mentioned in your note to which these payments are devoted will not be permitted to suffer interruption and that the postponement will not be considered a precedent.

Your Excellency requests my confirmation that ‘It is the intention of the National Government to make up the postponed payments in the year beginning April 1, 1933, as an addition to the regular payments service [scheduled] for that period’. There appears to be a misunderstanding on this point. It was rather contemplated that the postponed payments would be made up in the year after termination of all the installments under the present arrangement, namely, after 1945. In other words the payments for the year beginning March 1st, 1932, would be made, it is proposed, in the year 1946.

I have the honor to request Your Excellency’s confirmation of the above understanding.”

2. Although dated April 27th this reply was received by the Legation only on July 2nd. It appears to comply with the Department’s wishes. My understanding from conversations with T. V. Soong and Arthur Young 72 was that the Chinese expected to repay deferred installment after 1945. With the Department’s authorization I shall confirm.

Johnson
  1. American adviser to the Chinese Ministry of Finance.