493.11/1740: Telegram

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

212. Your 541, June 20, 5 p.m., last sentence.

Department approves. You may say in addition on behalf of the Department that the American Government is growing very impatient of evasive contentions; that the American Government’s suggestion of a claims commission to deal with obligations to American nationals is a suggestion of one among many possible steps toward a liquidation of such obligations and is not exclusive of any other possible steps; and that, whatever action the Chinese Government takes, the American Government expects that treatment not less favorable than that accorded to claimants of other countries shall be accorded by China to American claimants.
If the Department’s understanding is correct that British creditors of the Tientsin-Pukow Railway, in negotiating with the Ministry of Railways for the agreement now in force, acted as a unit, would it not be advisable for American creditors of Chinese railways to follow a similar procedure rather than to attempt to arrange for individual agreements?
For your confidential information. Department is pressing hard upon T. V. Soong, through Young and Sze, for early settlement of various petty obligations contracted by Chinese officials here, such as Riggs Bank and other small loans.