893.51 Yunnan/26
The Ambassador in China (Johnson) to the Secretary of State
[Received October 4.]
Sir: I have the honor to refer to my despatch No. 1304 of June 30, 1937,88 in regard to the desire for an American loan to finance the proposed [Page 615] Chengtu–Yunnanfu Railway, and in this connection to enclose a copy of despatch No. 269, July 10, 1937, from the Consul at Yunnanfu88a in which he states that Mr. Hu Tao-wen, the Chinese official who has discussed the matter with him previously, again called at the Consulate and made a plea for favorable consideration of the desired loan. Mr. Penfield points out that the authorities of both Yunnan and Szechuan are anxious to obtain this loan, that the authorities desire neither British nor French capital to be employed, and that if the Nanking authorities are in favor of it, (as Mr. Hu maintains is the case) the project might be regarded as a favorable opportunity for the investment of American capital and for the sale of American railway equipment.
Respectfully yours,
Counselor of Embassy