893.51/2272
The Chinese Chargé (Tung Kwai) to the Acting Secretary of State
Memorandum
The Chargé d’Affaires ad interim of China is in receipt of the following cable message from the Chinese Ministry of Finance at Peking:
“The finances of the Central Government are at present in an extremely critical state. Now that the new International Consortium has been formed, it is proposed to negotiate with that Consortium a loan of about $50,000,000.00 in American Gold. Of this amount $30,000,000.00 is to be used for making up the deficiency in the sums required for civil and military expenses of the Central Government for the months of July, August and September; and $20,000,000.00 is to be used for disbanding troops. For security, the surplus of the Salt Tax is to be offered. As to supervision, the provisions of Article XIV of the Reorganization Loan of 1913 are to be followed.
“You will please lose no time in ascertaining confidentially the conditions for making this loan; and it is to be hoped that in consideration of the friendly relations between the two countries an advance of the above-mentioned amount can be quickly secured to tide over the present situation.
“The above has been communicated to the American Minister.”
Mr. Yung Kwai would be greatly obliged if the Department of State would be so kind as to give him a reply for communication to the Ministry of Finance at Peking.