893.48/1031
Oral Statement by the Chinese Ambassador (Sze) to the Chief of the Division of Far Eastern Affairs (Hornbeck) on December 27, 1935
With reference to the two notes under date of November 18, 1935, sent through the Department of State to the Farm Credit Administration and the Reconstruction Finance Corporation respectively asking for an extension of the principal payments on the Grain Stabilization Loan and also the Reconstruction Finance Loan, and the oral statement of the Department of State of December 19th last, the [Page 659] Minister of Finance appreciates the willingness of the Government of the United States to adjust the schedules of payments so as to take account of China’s economic and financial situation, but it is found that the schedules proposed by the American Government are somewhat inadequate to meet the present situation.
It is the desire of the Minister of Finance to have a longer extension than that proposed so as to take care of the heavy principal payments maturing within the next five years.
Pending negotiations, the Ministry of Finance will pay on December 31, 1935, to the Farm Credit Administration a quarter million dollars United States currency.
As first step toward the settlement of the debts to American nationals the Minister of Finance desires to have contact with some representative authorized to negotiate with reference to the Chicago loan with a view to its settlement as soon as practicable.