Department of State Leases in China

The rights and obligations of the parties under the lease probably would be determined under the law of China and, as set forth further therein, the courts of China probably would relieve the lessor from its obligation to restore the premise under the facts herein present, the Comptroller General has to advise that, if the Department should determine to amend the original lease by supplemental agreement as proposed in the concluding paragraph of your letter, no objection thereto will be interposed. It is to be understood, of course, that the appropriations available for the payment of rental will be sufficient for the increased rental under the proposed supplemental agreement.