493.11/2063: Telegram

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

698. Bennett15 informs me informally that pressure is being applied on Chinese members of the China Foundation16 to invest $5,000,000 in Chinese Government Liberty Loan bonds from the endowment funds of both indemnity remissions. [J. A.] Mackay and [S. T. Bitting?] as members of the Finance Committee insist that Foundation must first approve and in anticipation of the application wish to learn unofficially whether the American Government believes it has the right and wishes to object to investments of this sort. My own feeling is that our Government having either explicitly or tacitly assented to the authority of the Foundation trustees in such matters should express no opinion but I respectfully request that the Department indicate what reply I should make to this question.

Repeated to Peiping.

  1. C. R. Bennett, representative in China of the American Group, China Consortium.
  2. China Foundation for the Promotion of Education and Culture, of which Mr. Bennett was a trustee.