Washington, June 29.
Mr. Jesse Jbnes, chairman of Recenstruetion Finance Corporation, announced to-day that the Exporte Import Bank, an R.F.C, subsidiary, had agreed to finance one-halt the price of a $1,500,000 sale of twenty locomotives to China.
Orders for ten locomotives each have been placed with the Baldi Locomotive Ca, and the Ameri Locomotive Ca. They will be first completely American-built locos motives to be sold to China, and be operated on Chinese Government. lines, Mr. Jones said that Dr. H. H. Kung, Chinese Minister of Finance, waa negotiating other credits, but that the total had not yet been determined because the Chinese Government had not decided on the precise equipment desired, Mr. Jones said he believed that additional railway equipment and also textile and paper manufacturing machinery were considered, The Export-Import Bank, he said, does not hesitate to. extend credits to China because that country has regularly: and promptly lived up to every financial agreement with the United States to the letter, He said about $13,000,000" worth of China er dits made in recent years were outstanding.
Dr. Kung's Statement 4
Dr. H. H. Kung revealed to-day that China is desirous of oBtaining foreign funds to finance internal loans which at present carry an interest rate of eight per cent. In addition, he said China is interested in core mercial credits abroad for "install. ment buying" of specific commodities, China is not interested in foreign loans for new purposes; he pointed out.
Dr. Kung made this statement after. he had been received by President Roosevelt at the White Hous and the President chatted for ten minutes. Mr. Roosevelt announced that he would again, receive Dr, Kung next week, possibly on Tuesday, after his own return from his son's wedding and after Dr. Kung's return from Oberlin College.
Dr. Kung explained that China wished to avoid a consortium loan. He said that'China custom: showed a surplus of Ch.$150,000,000 each year after payment of foreign loans installments and guaranteed on all outstanding foreign loans.
Text read from the printed page and cleaned; old type leaves the occasional error.