Foreign Relations of the United States Diplomatic Papers, 1937, The Far East, Volume IV

893.51/6289: Telegram

The Secretary of State to the Ambassador in China (Johnson)

Washington, February 8, 1937—5 p.m.

32. Your 62, February 5, noon, in regard to Hukuang Loan.

1. It would appear that representatives in China of the Groups have not yet informed Kung of position arrived at and made known by American interests concerned some 10 days ago. American interests are not “holding out.” It is our understanding that Bennett⁸⁹ is in position to inform you of present situation. Please confer with him and thereafter, in your discretion, make appropriate statement to Kung toward accurately dispelling Kung’s impression, indicated in your report of conversation of February 4, that settlement is being held up by attitude of American interests.

2. Please say also to Kung that his expression of hope in regard to Continental Bank loan is gratifying to and is shared by the Department.

3. When done, please telegraph report of conversations.

Hull

89. C. R. Bennett, representative in China of the American Group of the China Consortium.