861.77/2614: Telegram
The Minister in China (Schurman) to the Secretary of State
[Received July 15—10:44 a.m.]
307. Your telegram number 166, July 6, 5 p.m., last paragraph. It is virtually impossible to get any real information out of Chinese officials now in Peking in regard to Chinese Eastern Railway. The entire personnel in the Ministry of Communications is new and completely ignorant in regard to the railway and C. C. Wang is at Harbin. The Russo-Asiatic Bank informs me that the bond issue was designed to pay following: half million rubles to Japanese creditors for supplies delivered; about two millions to employees of railway discharged on ground economy, as bonus to keep them from starvation and from making trouble for railway; remainder to Chinese and Russian creditors for supplies delivered. A 2,000,000 silver issue [may also] be made to assist. It was hoped to make payments in cash derived from sale of gold issue but as sale is proceeding badly payments will probably have to be made in the bonds themselves. The bonds are unsecured, involve no mortgage and are virtually promissory notes.