The Acting Secretary of State to the Minister in China (Johnson)
181. Reference pertinent portions your 359, April 24, noon,97 and 459, May 20, 10 a.m., in regard to agreement between Ministry of Railways and British material creditors of Tientsin-Pukow Railway.
Andersen, Meyer and Company informs Department confidentially98 that agreement under reference does not reduce principal of British claims but substitutes straight 6 per cent interest for compound interest to February 1, 1933, after which date principal, plus 5 per cent per annum interest, is to be paid at rate of $50,000 Chinese currency monthly.
Andersen, Meyer endeavoring to conclude similar agreement covering its outstanding claims against Tientsin-Pukow Railway which, as of December 31, 1932, amount to approximately $83,000 gold and $20,000 Chinese currency.
Department desires that Legation take such steps as may be appropriate and practicable to obtain for Andersen, Meyer and other American creditors of Chinese Railways treatment no less favorable than that accorded other foreign or Chinese creditors.
Please inform Department by telegraph of any developments.