893.51 Salt Funds/241
The Department of State to the British Embassy
Aide-Mémoire
The Department of State has given careful consideration to the British Embassy’s aide-mémoire bearing date of October 5, 1939, and handed to an officer of the Department on October 12, in regard to the status of the foreign personnel of the Chinese Government Salt Administration.
[Page 865]During the past summer the unfortunate service conditions affecting the foreign personnel of the Chinese Government Salt Administration were studied by the Department with special reference to the question whether the curtailment that had occurred of the authority of the foreign personnel of the Salt Administration was likely to prejudice the position of American-held obligations secured upon the salt revenues. At that time, having in mind the history of efforts by the Chinese Government to curtail the authority of the foreign personnel of the Salt Administration, the record of the Chinese Government in consolidating and servicing its obligations secured on the customs and salt revenues, and the circumstances attending the Chinese Government’s announcement of the temporary discontinuance of the servicing of those obligations, the Department reached the conclusion that a formal approach to the Chinese Government in regard to the situation of the foreign personnel of the Chinese Government Salt Administration might seem to be a misplacing of emphasis and might imply a lack of appreciation of the grave situation confronting the Chinese Government.
The Department of State is, however, now instructing the American Ambassador in China to use his good offices, as appropriate occasions present themselves in conversations with the responsible Chinese officials, to the end that service conditions affecting the foreign personnel of the Salt Administration may be improved.