893.48/1020: Telegram
The Consul General at Shanghai (Davis) to the Secretary of State
[Received December 3—7:30 a.m.]
727. For Hornbeck from Young.
“Consider reasonable Chinese Government’s desire spread over extended period principal payments flood relief obligations given for sale surplus wheat instead of payment over 6,000,000 American dollars next 13 months. You will recall Chinese Government voluntarily allocated surtax as security and last year repaid one-third of principal. Extension particularly important in view of purposes this transaction, reference difficulties here and importance creating conditions favorable to currency reform. Strongly hope for favorable action this matter and similarly Reconstruction credit. Young.”