Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume V

893.51/7280

The President of the Export-Import Bank of Washington (Pierson) to the Under Secretary of State (Welles)

Washington, July 23, 1941.

My Dear Mr. Secretary: Since receipt of your letter of April 4³¹ in regard to the request of the Chinese Government for an extension of the Consolidated Loan from the Export-Import Bank of Washington, we have entered into an arrangement with the Chinese Ambassador whereby a payment upon principal of $700,000 plus accrued interest was made June 30, 1941.

At the same time, an understanding was reached with the Chinese Government, whereby further principal payments of $700,000 will be made quarterly hereafter until the obligation is liquidated. Interest will continue at the rate of four per cent per annum.

Very truly yours,

Warren Lee Pierson

31. Not printed.