No. 167.
(P 1057/230/10)
FOREIGN OFFICE, 3/7.1,
19th February, 1940.
My Lord Marquess, N^V/'>
u'ith reference to my telegram No. 251 I have to
inform you that in the course of a conversation at this
department on the 9th February, a member of the French
Embassy stated that the French Ambassador in China had
reported that the Chinese Government had concluded, or
were on the point of concluding, negotiations for a new
export credit from the United States amounting t©
#25,000,000.     This credit was in addition to, and'not in
substitution for, the original credit for the same amount
and it v/ould be secured on surpluses of wood oil and, in
addition, of wolfram, copper and bristles.
2. The French .Ambassador, who is at present at
Chungking, understood that the Chinese were negotiating
for the purchase of #20,000,000 worth of war material in
the United States.     They were hoping to make even more
extensive purchases and possibly to secure an increase of the
export credit to #75,000,000.
3, I shall be grateful for any confirmation of this
report which Your Lordship may be able to furnish.
I am, with great truth and respect,
My Lord Marquess,
Your Excellency's obedient Servant,
(For the Secretary of State)
/
His Excellency
The Most Honourable
The Varquess of Lothian, C.H. ,
etc.,       etc.,       etc.,
Washington. ^^^1