Foreign Relations of the United States Diplomatic Papers, 1939, The Far East, Volume III

893.51 Salt Funds/229: Telegram

The Acting Secretary of State to the Chargé in China (Peck)

Washington, June 7, 1939—4 p.m.

99. Your 359, June 4, 10 a.m., in regard to Salt Administration.

1. Department is not in position, in the absence of knowledge of the contents of the memorandum of May 26 described in your telegram under reference, to decide whether the curtailment of the authority of the foreign officials of the Salt Administration is likely in fact to prejudice the position of obligations held by American citizens upon the security of the salt revenues in such a way as to give those holders a cause for legitimate complaint.

2. If you feel that the action complained of by Lockhart does afford ground for complaint on the part of American bondholders, the Department authorizes you in your discretion to make appropriate informal representations to the Chinese Government in regard to the matter.

Repeated to Peiping and Shanghai.

Welles