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"I have already paid over the check for the installment accruing in August as you desired and shall be happy to pay over check accruing during September as requested by you. As regards subsequent checks, since the present arrangement has been understood to be provisional, I shall be glad if you will inform me from month to month in writing, addressed in care of the American consul general at Shanghai, of the bank in Peking authorized to give receipt in your behalf for the current installment."

MACMURRAY

493.11/1378: Telegram

The Minister in China (MacMurray) to the Secretary of State

PEKING, October 12, 1928-7 p. m.

[Received October 12-9:10 a. m.]

769. Legation's 744, October 3, 6 p. m., third paragraph. I have paid to Lo Chia-lun installment for September.

MACMURRAY

493.11/1368: Telegram

The Acting Secretary of State to the Minister in China (MacMurray)

WASHINGTON, October 15, 1928–6 p. m.

350. Your 744, October 3, 6 p. m.

1. Procedure for August and September instalments approved. 2. The Department considers that the essential features of the arrangement sanctioned by the Treasury should be retained, namely, endorsement of checks in favor of the Ministry of Foreign Affairs and obtaining receipt in the name of that Ministry. On the understanding that these requirements shall be fully safeguarded, the procedure described in your paragraph 4 is approved. Department suggests that undertaking given by Wang regarding expenditure of money (your paragraph 1) might advantageously be embodied in form letter sent each month.

CLARK

493.11/1386

The Secretary of State to the Minister in China (MacMurray) No. 1035

WASHINGTON, November 12, 1928. SIR: The Department refers to its telegram No. 329, dated September 29, 1928, 3 [2] p. m., regarding the Board of Trustees of the China Foundation for the Promotion of Education and Culture in

which the statement was made that Dr. Paul Monroe would probably proceed to China in the near future in connection with this question. You are now informed that Dr. Monroe called at the Department on November 1, 1928, at which time it was ascertained that he intends to leave the United States about the middle of November for China. On his arrival at Shanghai, he will endeavor to arrange with the Nationalist authorities for such changes in the personnel of the Board of Trustees of the China Foundation for the Promotion of Education and Culture as they may desire and that these changes be made in the manner prescribed by the constitution of the Board, i. e. by election. Dr. Monroe will also endeavor to bring about the cancellation by the Nationalist authorities of their order abolishing the constitution of the Board.

Dr. Monroe, in conversation with officers of the Department, inquired whether he would be authorized to inform the Nationalist authorities that if they rescinded the action reported in your telegram No. 602, of August 5, 1928, 9 a. m., payments on the second remission of the Boxer indemnity which are at present understood to be temporarily held, would be resumed. Dr. Monroe was informed in reply that the Department could not give assurances to such effect, but that obviously, if conditions were to return to their original state, it might be supposed that the arrangements with regard to funds would automatically bring about release of the funds. Dr. Monroe expressed the opinion that the present temporary suspension of payments under the Executive Order of July 16, 1925, was a salutary

measure.

Dr. Monroe exhibited a copy of a letter received by him from the Chinese Minister at Washington stating that a telegram had been received from the Nationalist Minister of Foreign Affairs to the effect that the latter had recommended to the Nationalist Government the rescinding of that Government's order abolishing the constitution of the Board of Trustees of the China Foundation. I am [etc.]

For the Secretary of State:
NELSON TRUSLER JOHNSON

493.11/1357: Telegram

The Secretary of State to the Minister in China (MacMurray)

WASHINGTON, November 20, 1928—2 p. m.

388. Department's 329 of Sept[ember] 29, 2 p. m. Monroe ready to start November 26. Now receives cable from Greene quoting Tsur saying Monroe should not start until advised as date of meetings is

uncertain.

Greene concurs. Inform Department promptly what is the difficulty and whether Monroe should be advised to proceed as planned.

KELLOGG

493.11/1402 : Telegram

The Minister in China (MacMurray) to the Secretary of State

PEKING, November 21, 1928-3 p. m.

[Received 6:20 p. m.]

838. Your 388, November 20, 2 p. m. I am informed by Greene that the interested Chinese have been working with a view to getting an arrangement that would preserve the legal continuity of the Board; they believe that the new Minister of Education is favorably disposed towards such arrangement and have in effect received from him intimations that he is disposed to facilitate the matter by issuing what the Chinese members consider necessary-an invitation from the Ministry of Education to the old Board to hold a meeting at which it could reconstitute its own membership in a way to satisfy the Nanking Government. Despite his supposedly friendly attitude however the Minister of Education does not yet find it politically opportune to take the action suggested. Those interested are apprehensive that Monroe's coming at this time might force the issue at an unfavorable moment; they therefore recommend delay but add that they are expecting word from friends at Nanking which may indicate that the time is ripe for him to come.

MACMURRAY

493.11/1407 : Telegram

The Secretary of State to the Minister in China (MacMurray)

WASHINGTON, December 11, 1928-7 p. m.

408. Department's 329, September 29, 2 p. m.

1. Reply dated December 5 received from Treasury. Penultimate paragraph quoted below for your guidance:

"The Joint Resolution of May 21, 1924,31 authorized the remission to be made by the President, in his discretion, and at such times and in such manner as the President shall deem just. The Executive Order of July 16, 1925, refers specifically to certain correspondence and the receipt by the Department of State of a copy of the constitution of the Board. It seems clear, therefore, that the arrangements for the remission were made on the basis of a mutual understanding

31 Foreign Relations, 1924, vol. 1, p. 554.

between the two governments and that no changes should be made therein without the consent of both parties."

2. For your confidential information Department quotes also last paragraph Treasury letter as follows:

"In the circumstances, therefore, the Treasury does not believe that further remissions should be made except in accordance with the procedure heretofore established or an appropriate modification of the Executive Order of July 16, 1925, with respect to which no opinion is expressed."

KELLOGG

493.11/1415 Telegram

The Minister in China (MacMurray) to the Secretary of State

PEKING, December 13, 1928-5 p. m.

[Received December 14-10 a. m.]

874. Your 408, December 11, 7 p. m. While I have refrained from consulting Tsur as to developments in regard to the China Foundation, I understand from Greene and Bennett that the matter is in a fair way to settlement. It appears that Hu Shih has received from the Nanking educational authorities sufficient assurances to warrant him in having a call issued for all of the old members of the Board to meet on January 4th and 5th at Hangchow at which time it is expected that the unacceptable members of the Board will resign and other members will be elected. It is intended that, along with various unessential amendments to the constitution to be adopted for the purpose of distracting public attention from the main issue, there will be adopted a resolution recommending to the Nationalist Government that it should not insist upon changing the present constitutional method by which the Board perpetuates itself by co-option, upon receiving which recommendation the Nationalist Government is expected to give its approval.

MACMURRAY

CONTINUED NEGOTIATIONS CONCERNING THE FEDERAL TELEGRAPH COMPANY'S CONTRACT WITH THE CHINESE GOVERNMENT 32

893.74/798: Telegram

The Minister in China (MacMurray) to the Secretary of State

[Paraphrase]

PEKING, January 3, 1928-2 p. m.
[Received January 3-11 a. m.]

1. 1. The deputy general manager of British Marconi Company, A. H. Ginman, recently called on me to discuss the radio situation in

*Continued from Foreign Relations, 1927, vol. п, рp. 472-482.

China. He inquired whether I could confirm his understanding that last autumn the Radio Corporation of America had informed representatives of the British Marconi Company that, while the corporation was unwilling that British and French radio interests should complicate the proposed business discussion with Chinese and Japanese representatives by participation therein, the corporation nevertheless recognized in principle the equality of their interests in the radio situation in China and would be prepared to accept a settlement on that basis. Mr. Ginman said that he made this inquiry because, although certain authorities in the Peking Government were anxious that an adjustment be reached with the American and Japanese interests, making possible the constructive and systematic development of radio communications, there was also a group anxious to perpetuate lack of agreement among the foreign wireless interests, and the British Marconi Company and its subsidiary, the Chinese National Wireless Company, had been under considerable pressure from this latter group to supply a large beam radio station. He added that, if there was any prospect of an agreement between all the interests concerned which would give a fair position to the British wireless interests (which he now understood would be acceptable to the Radio Corporation), he was unwilling to be drawn into a continued destructive rivalry among the different national interests concerned.

2. I informed Ginman that, so far as I knew, the Radio Corporation was prepared to have the British and French interests represented by the Mitsui Company in the proposed business conference, but that I was not in a position to give any assurance as to the extent to which recognition would be accorded to such British and French companies.

3. He intimated that he suspected the Japanese might be trying to exclude British and French interests and that perhaps the British Marconi Company might better protect itself and reach a general constructive settlement of the issue if it were free to deal directly with the Radio Corporation. He explained that he understood the freedom of action of the Radio Corporation was circumscribed by certain requirements of the American Government.

33

4. In replying, I referred to the fact that the American Government had disapproved of a plan for wireless consortium on a monopolistic basis proposed by the Radio Corporation in 1921, but that the American Government did not then and does not now have any interest in the matter beyond desiring an assurance that there should be no monopoly created, and that there should be

33 See Foreign Relations, 1921, vol. 1, pp. 404 ff.

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