The Chinese Ambassador (Koo) to the Secretary of State
Sir: In pursuance of instructions from the Minister for Foreign Affairs,3 I have the honor to inform you that my Government has approved the contracting of a credit of four million two hundred forty-three thousand, seven hundred fifty dollars ($4,243,750.00) from the Export-Import Bank of Washington for the purchase of ten (10) N–3–type vessels, namely E. C. Gardner, Harry Barber, Francis Bursley, Nathaniel Ingersoll, Samuel G. Borland, Alfred M. Lunt, Edward Nichels, William F. Howes, William S. Colley, and Benjamin M. Melcher, and for the movement of the said vessels to China. The [Page 365]terms are to provide for the payment of the principal in forty semiannual installments beginning from October 1, 1948, with interest at the rate of three and one-half per cent per annum, payable semiannually.
The Universal Trading Corporation, a Chinese Government agency, has been authorized to execute on behalf of my Government a credit agreement containing such other terms and conditions as may be mutually agreed upon and to execute and deliver to the Export-Import Bank promissory notes for advances against such credit and mortgages or hypothecations, in such form and with such terms and conditions as the Bank may require, of the ten (10) vessels as security for the said credit. The Universal Trading Corporation has been further authorized to do any or all other acts in connection with the effecting of the said credit and the carrying out of the terms of the Agreement.
I wish also to inform you that the Universal Trading Corporation has authorized its Director and Vice President, Mr. Sz-Dah Ren, to sign the agreement and other necessary documents. The agreement, note and mortgages and all other acts performed pursuant thereto by the above-designated representative will be valid and binding on the Republic of China and each of the said mortgages will become a first lien, in accordance with its terms, upon the vessel to which it relates.
I should be greatly obliged if you would be good enough to cause the above information to be transmitted to the appropriate authorities.4