893.51/3700: Telegram
The Minister in China (Schurman) to the Secretary of State
[Received January 25—9:15 a.m.]
19. Group of Chinese banks have consented to buy Chinese treasury bonds amount $14,000,000 repayable 20 equal monthly installments. Four millions of dollars of bonds applied face value to extinguish Government’s obligations. Banks receive discount $3,000,000 as interest on balance paid in advance, remainder will be paid Government in cash after deducting 1.03 percent transfer [Page 763] charge. Security is salt surplus. Gamble14 under Government’s instructions has guaranteed to transfer to banks [$]700,000 monthly for service bonds whenever surplus becomes available.
Presidential orders 19th approve recommendations of Chinese Director General Salt Administration for reform in service and negotiating above loan but stipulate there shall be no further foreign or Chinese loans on this security.
- Sir Reginald A. Gamble, associate chief inspector, Chinese Government Salt Revenue Administration.↩