893.51/6141: Telegram
The Secretary of State to the Consul General at Shanghai ( Gauss )
111. Your 209, April 16, 4 p.m. Please on behalf of Department thank your source orally for this information and say that the Department has noted with gratification manifestation of the Chinese Government’s interest and activity in regard to the general question of making arrangements for servicing its outstanding obligations. State also that the Department desires that your source know that in a number of quarters here, both private and official, there is a feeling that the terms offered by the Chinese Government envisage such extensive diluting of the creditors’ rights as to render such terms unduly favorable to the debtor government; and that the terms offered on the [Page 591] Tientsin–Pukow bonds, if applied to some of the other obligations mentioned, will appear far from generous; and that there prevails here the view that solicitous consideration should be given by the debtor to each of its various obligations on the individual merits thereof.