The Chief of the Division of Far Eastern Affairs (Hornbeck) to Mr. Thomas W. Lamont of New York

Dear Mr. Lamont: We have received and wish to thank you for your letter of March 19, with enclosures,52 on the subject of recent purchases by the Chinese Government of railway materials.

We of course are endeavoring to follow closely developments relating to the rehabilitation and extension of Chinese Government railways and are therefore appreciative of your cooperation in making available to us a copy of Mr. Scott’s53 letter addressed to you under date February 20.

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In this connection we note with interest Mr. Scott’s comment to the effect that, “because of the problem of financing”, American firms are not in position to participate more substantially in the supplying of railway and other equipment desired by various agencies of the Chinese Government. Apparently your and our reactions to this statement were similar as you mention—in your reply to Mr. Scott—the Export-Import Bank. We of course are not in position to speak in any way for the Export-Import Bank, but it has been and is our understanding that the Bank is prepared to consider sympathetically approaches made to it provided the transactions under contemplation are practicable and the concerned American interests show themselves ready to shoulder at least a reasonable share of such risks as may be involved.

Sincerely yours,

Stanley K. Hornbeck
  1. None printed.
  2. George C. Scott, president of the United States Steel Products Corporation.