493.11/1695: Telegram

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

285. Your 97, March 25, 2 p.m. Copy of Legation’s note of January 2094 being forwarded by pouch. Note submitted and recommended acceptance of draft of proposed convention enclosed with Department’s instruction No. 643, December 10, 1931,95 which outlines clearly in article 1 wide scope of claims to be passed upon. Only place where phrase “contractual obligations” occurs is the following: “Further delay in settling this problem would I fear be interpreted by my Government only as evidence of a lack of any serious intention on the part of the Chinese Government to settle its contractual obligations”. Soong understands broad scope of proposed commission and Legation will make sure in subsequent conversations and correspondence that adjudication is not to be confined to contractual obligations alone.

On March 23 Foreign Office informed Peck that plan was referred to Executive Yuan for sanction some time ago and that efforts would be made by the Foreign Office to expedite action. Soong believes reply will undoubtedly be favorable since he himself has approved the proposal.