493.11/1726: Telegram

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

193. Your 492 of June 2, 9 a.m.1 Based upon such information as is now available and particularly the concluding sentence of the second paragraph of your 459 of May 20, 10 a.m., Department intends at earliest opportunity to discuss with Sze the apparent unwillingness of the Chinese Government to accord to American creditors of Chinese railways treatment no less favorable than that accorded British creditors. Department has already brought this phase of the question to the attention of Arthur Young2 who readily agreed that American claimants should not be discriminated against in any agreements arrived at covering claims against Chinese railways.

Department approves of your suggestion that American creditors of Chinese railways should initiate negotiations of their own with a view to concluding agreements similar to that obtained by British creditors but does not desire that the Legation withhold appropriate action until such time as efforts of American claimants have proven fruitless. The American Government expects the Chinese Government to place American creditors of Chinese railways on an equal footing with creditors of other nationalities and you may so inform the Chinese Government.

Phillips
  1. Not printed.
  2. American adviser to the Chinese Ministry of Finance.