893.51/6–1746: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received June 18—6:55 a.m.]
998. By letter dated June 15 Embassy was informed by FonOff in substance that on behalf of Chinese Govt Executive Yuan has approved borrowing $8,800,000 from Eximbank for purchase and export to China of materials and service required to install 10 auxiliary power units and accessory equipment in China, on terms providing for payment of principal in 50 approximately equal semi-annual installments, first of which due and payable in October 1951, at 3 percent per annum payable semi-annually. Chinese Supply Commission in Washington has been authorized by Executive Yuan to execute a credit agreement on behalf of his Govt containing such other terms and conditions as Eximbank may require, and to execute and sign [Page 988] promissory notes evidencing advances against such credit. Dr. S. C. Wang or such person or persons as he may designate in writing has also been authorized to perform any and all other acts with respect to effecting loan and implementing agreement.
Chinese Govt accepts agreement and all acts done pursuant thereto by its above designated representative as valid and binding on it.