University of Wisconsin Digital Collections
Link to University of Wisconsin Digital Collections
Link to University of Wisconsin Digital Collections
Foreign Relations of the United States

Page View

United States Department of State / Foreign relations of the United States diplomatic papers, 1936. The Far East
(1936)

China,   pp. 459-705 PDF (89.6 MB)


Page 459


                           CHINA
PROBLEM OF CHINA'S ECONOMIC RECONSTRUCTION AND THE AT-
TITUDE OF THE UNITED STATES AND OTHER GOVERNMENTS
RESPECTING FINANCIAL ASSISTANCE TO CHINA'
893.48/1034
Memorandwm by Mr. Raymond C. Mackay of the Division of Far
                        Eastern Affairs
                                 [WASHINGTON] January 3, 1936.
Conversation: The Chinese Ambassador, Mr. Sao-Ke Sze;
              Mr. Hornbeck 2;
              Mr. Mackay.
  The Chinese Ambassador called at the Department and, after re-
ferring to recent negotiations in regard to payments due on the wheat
credit of 1931 and the cotton and wheat credit of 1933, affirmed that
the Chinese Government had been "penalized" by the effecting on
December 31, 1935, of payment in full of the sum of $3,000,000 plus
then owing the Farm Credit Administration. The Ambassador
further stated that the situation had resulted from his having placed
"all his cards on the table" and that therefore there devolved
on him
the "guilt" for China's loss of the accommodation which had been
sought. Mr. Horubeck said that he could not agree either as to there
being any "guilt" (or fault) or as to the contention that the Chinese
Government had been "penalized" by the effecting of a payment in
full
of the amount due on the given due date.
  The Ambassador then said that he hoped he might be able to obtain
from the Farm Credit Administration a refund of $2,750,000 and
from both the Farm Credit Administration and the Reconstruction
Finance Corporation more liberal terms covering payments on those
portions of the credits under reference which remain outstanding.
  The Ambassador asked whether Mr. Hornbeck would, in case the
Ambassador should succeed in obtaining by direct approach to the
F. C. A. and the R. F. C. the concessions which he had indicated-
whether Mr. Hornbeck would refrain from opposition. Mr. Horn-
beck said that he doubted whether it would be possible by any process
1 Continued from Foreign Relations, 1935, vol. iII, pp. 526-664.
'KStanley . Hornbeck, Chief of the Division of Far Eastern Affairs.
                                                       459


Go up to Top of Page