893.51/6184: Telegram
The Chargé in the United Kingdom (Atherton) to the Secretary of State
309. Your 206, June 12 [11], 5 p.m.42 Reuter despatch from Nanking, June 7th, which was generally published in the British press [Page 489] and doubtless available likewise to the Department, reported: “The Chinese Minister of Railways has announced that a 6% sterling loan for the completion of the Shanghai–Hangchow–Ningpo Railway will be floated very shortly with the aid of a syndicate composed of British and Chinese corporations.”
I understand this loan is to be issued in the Shanghai market for 1,130,000 pounds. The object of the loan is as stated and it will be remembered the outstanding bonds amounting to 300,000 pounds of the previous Shanghai-Ningpo Railway loan were repaid at par last June. Two weeks ago a Chinese 6% indemnity loan was placed in Shanghai but that was a private issue whereas the present loan will be publicly floated. Moreover, it is understood here that application may be made to the London Stock Exchange for a quotation of the new loan. The Foreign Office generally confirms the above and hazards the suggestion that a great deal of the loan may have to be taken by the banks.