893.77a/18: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received October 15—6 a.m.]
905. 1. Following from American Consul General at Hankow:
“October 1, noon. F. W. W. Valpy, engineer in chief of the Hupeh-Hunan section of the Canton-Hankow Railway under the terms of the loan agreement with the group banks, dated May 21 [20], 1911, has been dismissed by order of the Ministry of Railways on the sole grounds of retrenchment in expenses. Valpy has declined to turn over office until arrears of pay for services amounting to $36,429.76 are paid to him plus pounds sterling 100 for passage money to England.”
2. American representative in Peiping has requested me to join with other interested Legations in making representations to the Chinese Government concerning the treatment of Valpy and the execution of the provisions of the loan agreement. It appears that in the letter of dismissal Valpy was informed “there is now no further necessity of employing a foreign engineer in chief for this work.” British Minister has informed the French Minister and myself that he proposes to protest to the Minister of Foreign Affairs, pointing out that the Chinese action is contrary to article 17 of the Hukuang loan agreement of May 20, 1911. Lampson inquires whether I am disposed to address identic or similar representations.
3. Since Valpy is a British subject I am of the opinion that it would not be advisable for this Legation to join in representations with regard to the particular treatment accorded Valpy or the details of his claim but it is possible that the Department might regard it appropriate to protest with respect to that portion of article 17 which provides that the Chinese Government will continue to employ European and/or Americans as engineers in chief during the culmination [currency] of this loan. Department’s instructions are requested.