Washington, Apr. 20.
Responsibile Chinese quarters said to-day. that the Nanking Government was likely to seck a foreign loan at!
early opportunity for the purpose of strengthening the nation's internal structure by productive revenue-railing projects, chiefly railroads.
The Chinese Government, the me formants said, had recently prepared the ground-work for new financing by, announcing the resumption of payments on two. defaulted loans Moated partly in the United States, "the Hukuang Railway Lean of 1911 and the so-called Chicago Bank Loan of 1919.
Ik was understood here that Chie nese offeials had subsequently opened negotiations for a repayment programme in. connection with an out-alanding defaulted loan in the United States, namely, the Pacific Development loans, which are held exclu sively by bankers.
London Lo:
'The purpose of these repay believed to be to strengthen Chin' credit position with a view to insuring favourable conditions when new Ananeing is, sought, twas understood here that the Chinese were more likely to seek their first loan at London than the United States. Despite denials from China, it was reported here that the Minisier of Finance, Dr. H. Kung, might negotiate on the subject during his visit to London for the Coronation.
'United States ofcials consulted by the United Press regarding the prospect of a Chinese foreign loan said they had not heard of such a plan, Dut expressed the opinion that' the move would not" be surprising, in View of the recent improvement in Chinese Government revenues, %0- gether with the pacification of the political situation.
"Attention was called to the fact that all the Chinese provinces. with the exception of Sinkiang and the former Manchurian "provinces now acknowledge themselves subordinate to Nanking, thereby creating a calm political situation.
Text read from the printed page and cleaned; old type leaves the occasional error.