The Ambassador in France (Bullitt) to the Secretary of State
[Received June 5—8:25 a.m.]
738. My 724, June 3. In the course of a conversation last night Dr. Kung, Chinese Minister of Finance, went into further detail with regard to the proposals which had been made to him in London. The [Page 605]proposals for loans to the Chinese Government for the construction of a railroad from Canton to Fukien and another from Pukow to Sinyang secured on the salt and customs revenues he had rejected. He had indicated, however, that he would be glad to have such loans made directly to Chinese railroad companies and secured on the railroads themselves. He believed that negotiations in this sense might be carried through.
He went on to say that for the “conversion loan” referred to in my 724, June 3, he was ready to pledge the salt and customs revenues.