893.51/3586: Telegram

The Minister in China ( Schurman ) to the Secretary of State

408. My 407, November 17th, midnight. Following summary of reply [to] Minister of Foreign Affairs:

Diplomatic body is quite disposed to render all possible assistance but it understands that Inspector General not in a position to agree to release such surplus, as by Presidential mandate March 3d last all customs surplus has been designated to be set aside as a sinking fund for consolidated internal loan service under control Inspector General, consequently transfer of funds to other purposes would constitute serious breach of trust to the general bondholders. Under the circumstances diplomatic body unable to see way to remove such technical difficulty which exists within the administration of the Chinese Government and to notify Inspector General as requested.

Schurman