893.51/5–2046: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received 8:23 a.m.]
827. On May 14 Embassy was informed by FonOff27 by letter that
“Executive Yuan, on behalf of the Govt of the Republic of China, has approved the borrowing of $16,650,000 from the Export–Import Bank of Washington, D. C., for the purchase and exportation to China of materials for the repair of the Chinese Railway system upon terms providing for payment of principal in 50 approximately equal semiannual installments, the first of which shall be due and payable in October, 1951, with interest at the rate of 3 percent per annum payable semi-annually. The Executive Yuan has authorized Dr. S. C. Wang, Chairman of the Chinese Supply Commission in Washington, to execute on behalf of the Govt a credit agreement containing such other terms and conditions as may be required by the Export–Import Bank, and to execute and sign promissory notes evidencing advances against such credit. The Executive Yuan has further authorized Dr. S. C. Wang or such person or persons as he may designate in writing to do any and all other acts in connection with effecting the loan and carrying out the agreement.
In consequence of the foregoing action by the Executive Yuan, the agreement and all acts performed pursuant thereto by the above designated representative will be valid and binding on the Govt of the Republic of China.”
- Foreign Office.↩