493.11/1676: Telegram

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

143. Department’s 47, February 11, 2 p.m. I saw T. V. Soong here today but he did not raise the question of indemnity and I did not mention it preferring to deal with it through Young.

On February 10th I telegraphed Cunningham confidentially as follows:

“Please see Arthur Young and say to him that I have his letter about possible further postponement indemnity. Say that I have [Page 662] referred it to Washington without comment but that it is my personal feeling that such a suggestion at this time will be embarrassing to the United States because in the case of American funds it amounts to a decision to divert moneys from educational and cultural channels which is to be regretted at this time when educational and cultural channels are so important.”

I am now writing Young repeating the message which I communicated to him through Cunningham and elaborating the statements made in Department’s 47 under acknowledgment.

British Minister informs me that when he passed through Nanking Soong wrote him along lines similar to Young’s letter to me. Lampson replied stating matter would have to be given very considerable thought implying British unwillingness to assent.