893.51 Con-Ob American Group/50: Telegram

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

212. Department’s 77, April 28, 7 p.m., paragraph 1, regarding Pacific Development Corporation loan. I have received the following letter dated May 20 from Arthur N. Young:

“You will, I am sure, be pleased to learn that according to a cablegram from London which I received this morning, the Pacific Development loan has been settled between Minister Kung and Mr. Lamont, subject to confirmation by Nanking and New York. The cablegram summarizes the terms as follows: (1) Amount United States dollars 4,900,000; (2) Overdue interest canceled; (3) Interest 2 per cent this year, one-half per cent annual increase until 4 per cent maximum; and (4) amortization provisions security the same as for the Chicago loan”.