893.51 Con. Ob. Andersen Meyer and Co./51: Telegram

The Acting Secretary of State to the Chargé in China (Peck)

313. Your 605, December 19, 10 a.m.27 The matter of the claims of certain creditors of the Peiping–Suiyuan Railway was taken up with the Japanese authorities on the basis of information tending to indicate that the line was operated by a Japanese Government controlled and directed company and that such operations were resulting in income in excess of operating costs, which surplus might properly be used to meet payments falling due under the respective contracts between American creditors and the Railway.28

Since the Department is not informed that a similar situation exists with reference to the Peiping–Hankow Railway, it would not appear to be in a position to take up with Japanese authorities at this time the matter of claims of American creditors against that railway. Inasmuch as the obligation to make payments stipulated in the contract of October 31, 1933 rests primarily on the railway and the Chinese Government, Department desires, as a preliminary to the giving by it of further consideration to the question whether representations to the Japanese Government should be made, that the Embassy take up with the appropriate Chinese authorities the Flatter of making payment of overdue installments and the resumption of monthly payments.

Department desires to be kept informed of developments.

Repeated to Peiping.

  1. Not printed.
  2. See telegram No. 234, September 2, 6 p.m., to the First Secretary of Embassy in China, p. 463.