893.51 Con. Ob. Continental/152: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

269. Department’s September 15, 11 a.m. to Peiping. I communicated to Kung September 17, 1 p.m. message contained in paragraph 3. He assured me he would give careful and sympathetic consideration to the new proposals and he recapitulated efforts made by him on behalf of Chicago Bank Loan including conversations with Abbott in 1926 and 1931. I inferred main points of disagreement are now interest rates and period of amortization. Kung urged that the bondholders be lenient in these respects and pointed out that with the announcement of redemption agreement market value of bonds would inevitably rise. Repeated to Peiping.

Peck