File No. 893.51/1536.
Chargé MacMurray to
the Secretary of State.
No. 338.]
American Legation,
Peking,
August 17, 1914.
Sir: Supplementing my telegrams of August 8
and August 12,21 I have
the honor to enclose herewith the translation of a note No. 202 from the
Foreign Office proclaiming a moratorium on the part of the Chinese
Government on certain of its debts; the translation of a second note,
No. 203, from the same source explaining that the moratorium referred
only to its short-term foreign obligations; and a copy of my reply to
the foregoing, as instructed by the Department. The Department’s
suggestion that the moratorium be specified as for a fixed period (of,
say, six months) has been orally communicated to the Minister for
Foreign Affairs.
I have [etc.]
[Inclosure 1—Translation.]
The Board of Foreign
Affairs to the American
Legation.
No. 202.]
Foreign Office,
Peking,
August 8, 1914.
Sir: We are in receipt of the following
communication from the Board of Finance:
The short-term loans of the Central Government are very
numerous, and the loans contemplated [to meet them] have not
been carried through. The war in Europe has stopped all
exchange transactions and banking operations have come to a
stop. Therefore all debts due to banks, foreign firms,
companies and shipyards, whether calling for payment at
fixed times or by arrangement, cannot be met at this time of
financial stringency. You are requested to explain to the
Ministers resident at Peking the unavoidable cause of this.
All those concerned in the debt must wait temporarily until
conditions are somewhat settled and banking operations have
recommenced, after which measures will certainly be taken to
meet all obligations in good faith.
We would observe in regard to all the foreign obligations of the
Chinese Government that owing to the war in Europe the banks are
tied up so that it is impossible to make payments. The Chinese
Government has no intention of breaking faith, but unexpected events
have made it impossible for it to act otherwise. Therefore we now
send this despatch to you, the Honorable Chargé d’Affaires, for your
consideration and sincerely hope that you will explain China’s
difficulties to all those concerned in the debts due from China.
A necessary despatch [etc.]
[Inclosure 2—Translation.]
The Vice Minister for Foreign
Affairs to Chargé MacMurray.
No. 203.]
Foreign Office,
Peking,
August 10, 1914.
Sir: I have the honor to refer you to the
Ministry’s note of the 8th instant in reference to the postponement
of the repayment of the short-term foreign loans. I have the honor
to note that the foreign loans mentioned in the said
[Page 69]
communication referred only to the
short-term foreign loans. Fearing that there might be some
misunderstanding, I am sending you this note for your
information.
With compliments.
[Inclosure 3.]
Chargé MacMurray
to the Minister for Foreign
Affairs.
American Legation,
Peking,
August 11, 1914.
Excellency: I have the honor to
acknowledge the receipt of your excellency’s note dated August 9 [8]
in which you propose the temporary postponement of payment of the
short-term foreign debts and obligations of your excellency’s
Government; and I also have the honor to acknowledge the receipt of
the explanatory note dated August 10. I have communicated with my
Government regarding this matter, and I am now in receipt of a reply
to the general effect that my Government recognizes the difficulty
of the Chinese Government at this time and, while reserving all
rights belonging to the American Government or to American citizens
under existing agreements, will offer no objection to the course now
proposed by the Chinese Government.
I avail [etc.]
