893.77/3322

Dr. Arthur N. Young to the Adviser on Political Relations (Hornbeck)21

Translation of Telegram From Dr. H. H. Kung, Chungking, December 3, 1940

The construction of the Yunnan–Burma Railway was suspended for some time on account of difficulties in importing the necessary materials as a result of the situation in Indo-China and Burma. As this Railway is the most important line of communication between China and foreign countries, it is essential to hasten its completion as soon as possible in order to facilitate transportation.

It has been reported that Great Britain also attaches the utmost importance to this Railway and is considering a loan to China of £s4,000,000 for completing its construction; and that the British Ambassador in the United States has approached the American Government for its views on the matter. Great Britain is thus desirous [Page 705] of concerted action by the United States. If the project is supported financially by Great Britain and the United States, construction work should be resumed at once. According to the estimates of experts, however, the loan will have to be increased to £s5,000,000 to meet the necessary expenditures.

Ambassador Quo Tai-chi has been instructed to negotiate with the British Government. Please call the attention of the American Government to the importance of the Yunnan–Burma Railway in relation to China’s war of resistance, and seek its support in bringing about the early completion of the railway.

  1. Handed to the Adviser on Political Relations by Dr. Young on December 5.