Government to grant China a $20,000,000 wheat loan has caused keen disappointment among officials of the Chiang Kai-shek administration, according to trustworthy reports received in official quarters here today.
The American Secretary of the Treasury, Mr. Henry Morgenthau, is reported to have rejected the Nationalist Government's request made recently through Dr. C. T. Wang, Ambassador in Washington.
Coming soon after the British Government's rejection of a money loan to China, the American refusal caused gloom in Hankow and Chungking, the reports stated.
After consulting Secretary of State, Mr. Cordell Hull, the American Secretary of the Treasury refused the Nationalist request, the reports stated on the grounds that granting of the wheat loan while hostilities are going on would "complicate the situation by exciting public feeling."—Domei.
Text read from the printed page and cleaned; old type leaves the occasional error.