893.51 Con. Ob. Andersen, Meyer and Co./56: Telegram

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

91. Embassy’s 605, December 19, 10 a.m., and 48, January 23, 2 p.m.,87 in regard to Peiping-Hankow Railway indebtedness to Andersen, Meyer and Company and Baldwin Locomotive Works.

The Embassy has received the following note (in translation by the Embassy) from the Ministry of Foreign Affairs dated February 4.

“I have the honor to refer to my reply of January 28 to your note in regard to the indebtedness to Messrs. Andersen, Meyer and Company and the Baldwin Locomotive Works of the Peiping-Hankow Railway.

A report has now been received from the Ministry of Communications stating that it previously decided to strive to meet the debts of each railway prior to its complete occupation but that in case of railways which are entirely occupied and which bring in absolutely no revenue, it has no alternative, in view of the press of circumstances, but to suspend payments temporarily. The indebtedness referred to [Page 281] above has been paid up to the month of May 1938, after which, and before the complete occupation of the Peiping-Hankow Railway, certain sums should also be paid. Following the Ministry’s removal to Chungking, it decided to make payments at the place where the Ministry is located. The Ministry has telegraphically requested the Hankow branch of the National City Bank of New York to designate an organization in Chungking to receive payments on its behalf, but has received no reply. A telegram has recently been despatched to the Shanghai branch of the same bank to negotiate concerning the matter, and payment will be made accordingly as soon as a reply is received. The Ministry requested that the matter be noted and a reply made to the party concerned.

I have the honor to indite this formal note for your information.

I avail myself, et cetera.”

Shanghai is requested to bring the foregoing to the attention of Andersen, Meyer and Company (see Shanghai’s despatch No. 1422, November 3, 193888).

Sent to Shanghai. Repeated to Peiping.

  1. Neither printed; but see Department’s No. 313, December 27, 1938, 5 p.m., Foreign Relations, 1938, vol. iv, p. 583.
  2. Not printed.