893.51/6910
The Chinese Ambassador (Hu Shih) to the
Secretary of State
Washington, June 8,
1939.
My Dear Mr. Secretary: Referring to my note of
April 26, 1939, enclosing two telegraphic messages from His Excellency
Dr. H. H. Kung, Minister of Finance, I beg to enclose herewith a copy of
another telegraphic message from Dr. Kung, dated Chungking, June 7,
1939, concerning the service of the loans secured by the customs and
salt revenues and the deferment of payment of the Indemnity of 1901, for
your consideration.
I am [etc.]
[Enclosure]
Text of a Telegraphic Message Received by the
Chinese Embassy From His Excellency Dr. H. H. Kung, Minister of
Finance, Dated Chungking, June 7, 1939
Please communicate the following to the United States Government:
Reference is made to the Chinese Ambassador’s note of April 26, 1939,
enclosing two telegraphic messages from His Excellency Dr. H. H.
Kung, dated Chungking, April 14, 1939, and April 20, 1939,
respectively. In these messages the Chinese Government expressed
hope that the friendly foreign Governments can prevail upon Japan to
allow utilization for debt service of the pledged revenues in the
occupied areas, and laid before the Governments and the creditor
representatives a plan relating to the part of debt service that
would not be transferred under the proposed debt arrangement, which
plan formed part of the proposal.
Negotiations with the creditor representatives while not yet
completed
[Page 840]
appear to be
approaching completion. The Chinese Government considers that it
would be very desirable if contributions from the occupied areas
could be forthcoming coincidental with the resumption of payments in
pursuance of the arrangements, which, it is hoped, will shortly be
agreed upon. It therefore again expresses the hope that the friendly
Governments, either jointly or severally, will press the Japanese
authorities for such contributions. In this connection the Chinese
Government points out that the accumulation of collections in
Chinese currency in Japanese banks is very prejudicial to the
position of the currency in the occupied areas in the stability of
which the friendly Governments have taken a very helpful
interest.
Reference is also made to the Chinese Ambassador’s note of April 3,
1939, requesting agreement to the deferment of payment of the
Indemnity of 1901 temporarily during the hostilities, to which note
so far no definite reply has been received. Inasmuch as certain
loans are secured upon the Belgian, British and French portions, the
Chinese Government very much hopes that, when the debt arrangement
[is] announced, it will be possible also to announce the deferment
of the Indemnity payment except in so far as required to cover
payments in respect of loans secured thereon under the arrangement.
An early favorable reply would be greatly appreciated.
