Office of the Historian

893.51/6926: Telegram

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

Washington, June 28, 1939—5 p.m.

117. Your 371, June 10, 9 a.m. The Board of Trustees of the Export-Import Bank asks that the Government of China be informed that the Export-Import Bank is willing to modify in the following particulars the terms of the consolidated note executed on May 28, 1936, by the Chinese Ambassador to the United States on behalf of the Chinese Government:

(a)
That payment of each of the instalments of $700,000 due on the last days of June, September and December of 1939, on the last days of March, June, September and December of 1940, and on the last day of March 1941 will be deferred for a period of 2 years and
(b)
That the interest rate of 5 percent per annum borne by the consolidated note will be reduced to 4 percent per annum for a period from July 1, 1939, to March 31, 1941, inclusive.

The Export-Import Bank desires that the Chinese Government be further informed that in all other respects the terms of the consolidated note shall remain unchanged and that the Bank of course understands that the interest payment due on June 30, 1939, will be made in accordance with the terms of the consolidated note.

Repeated to Peiping.

Hull