893.51/5823
The Minister in China (Johnson) to the Secretary of
State
No. 2280
Peiping, September 7, 1933.
[Received
October 2.]
Sir: Referring to previous correspondence
concerning the service of the Hukuang Railways Loan of 1911, I have the
honor to transmit
[Page 649]
a copy of a
letter dated July 10, 1933, from Mr. James A. Mackay, Assistant Vice
President of the National City Bank of New York and my reply of July 14,
1933.17
On July 18, 1933, the British Minister suggested to my French colleague
and myself that a further joint memorandum be sent to the Chinese
Government reminding it of its obligations in respect to the Hukuang
Loan. On July 19, 1933, I indicated my willingness to join in the
memorandum but took occasion to point out that a note on this subject
had been addressed by me to the Minister for Foreign Affairs as recently
as June 29, 1933.18 The
British Minister sent me the joint memorandum on July 27, 1933, and I
returned it to him after signature for delivery to the Minister for
Foreign Affairs. Copies of these communications are enclosed.19
On August 6, 1933, the British Minister approached me with the proposal
to send another joint memorandum mentioning a report that the 5% Famine
Relief Customs Surtax would be utilized as part security for the
$50,000,000 American Wheat and Cotton Loan. I reported this proposal to
the Department by my telegram No. 674, August 11, 3 p.m. and, following
the receipt of the Department’s reply, No. 297, August 23, 1 p.m., I
sent a note to the British Legation20 based upon the Department’s
instruction. Copies of these several notes are enclosed.
I have had no further communication from the British Legation in
reference to the matter.
Respectfully yours,
[Enclosure]
The American Minister in China (Johnson) to the British Minister in
China (Lampson)
The American Minister presents his compliments to His Britannic
Majesty’s Minister and has the honor to acknowledge the receipt of
his third person note of August 6, 1933,18 proposing a further
memorandum to be addressed to the Minister for Foreign Affairs by
the Ministers of Great Britain, France and the United States of
America, relative to the failure of the Chinese Government to
implement Articles VIII and IX of the Hukuang Railway 5% Loan
Agreement of 1911.
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The American Minister has not failed to give serious and careful
consideration to this proposal, and at the same time has consulted
by telegraph with his Government.
As the result of this consideration, Mr. Johnson regrets that he
cannot see his way clear to joining in representations along the
line proposed, in view of the fact that he finds no warrant for the
reference in the proposed memorandum to the Cotton-Wheat Loan. Nor
does he perceive warrant for reference to the 5% Famine Belief
Customs Surtax, as it would appear that the provision in Article IX
of the Hukuang Railway Agreement for substitution of Security could
not reasonably be held to have contemplated inclusion of such
revenues as, for instance, those derived from the Famine Relief
Customs Surtax.
He is, however, disposed, in cooperation with his British and French
colleagues, to continue to urge upon the National Government of
China that the bondholders of the Hukuang loan are entitled under
Article IX of the Agreement of 1911, to have the service of that
loan made a charge “as described and as provided in that Article,
upon a portion of the Customs revenue.”
Peiping, August 29,
1933.
