893.51/6906
Memorandum of Conversation, by the Assistant Chief of the Division of Far Eastern Affairs (Mackay)
Responsive to requests made of the Department by J. P. Morgan and Company (see Mr. Arthur Anderson’s letter of May 3178) and by the Foreign Bondholders Protective Council (see Mr. Francis White’s letter of May 3179), Mr. Mackay telephoned to Mr. Tsui of the Chinese Embassy in regard to the recent proposals of the Chinese Government with respect to the service of its obligations secured on the Customs and Salt revenues. Mr. Mackay referred to the requests made of the Chinese Embassy by J. P. Morgan and Company and by the Foreign Bondholders Protective Council to [Page 836] the effect that the texts of any proposed announcements in regard to the future service of Chinese loans be made known to them sufficiently in advance of publication to permit of study and of comment should any revision seem desirable. Mr. Mackay said that, as any proposals of the Chinese Government affecting American bondholders would require careful consideration and might possibly present complications in view of the existing regulations of the Securities and Exchange Commission, it would seem desirable from the point of view of all concerned to accord to the representatives of the American bondholders ample time in which to study and to offer comment in regard to such proposals. Mr. Mackay expressed the hope that the Chinese Government would see its way clear to follow such a course.
Mr. Tsui said that he was aware of the desires of J. P. Morgan and Company and of the Foreign Bondholders Protective Council, as referred to above, and that he would at once refer the matter to the Chinese Ambassador with a view to acquainting the Chinese Foreign Office by telegram of the situation under discussion.