893.51/6141: Telegram

The Consul General at Shanghai ( Gauss ) to the Secretary of State

209. Department’s 52, March 7, 2 p.m., to Embassy.

1.
I am reliably informed95 that the Minister of Finance through the Chinese Ambassador in Washington is initiating discussions, presumably with Continental Illinois Bank and Trust Company, Chicago, looking toward servicing the 6% 3 year gold loan Treasury notes of [Page 590] 1919. Apparently no such action is being taken in regard to so-called Pacific Development loan of 1919. Also reliably informed that definite proposition has been made by Chinese Government for resumption service on Hukuang loan along general lines of recent agreement for resumption service on Tientsin–Pukow Railway loans. Other loans which are having the attention of the Ministry of Finance are the Vickers loan of 1919, the Pukow loan of 1914, and the so-called Marconi loans of 1918 and 1919.
2.
Also reliably informed that Ministry of Finance is actively working on reorganization Central Bank of China along lines Federal Reserve Bank. Rogers of Leith-Ross party is one of those engaged in drawing up the plans.
Gauss
  1. By Arthur N. Young, American adviser to the Chinese Ministry of Finance.