File No. 893.51/1385.
The American Group to the
Secretary of State.
[Extract.]
New York,
April 12, 1913.
Sir: We beg to enclose herewith, for your
information and files, a copy of a letter addressed to us by his
excellency Chang Yin Tang, the Chinese Minister in Washington, together
with a copy of our reply of to-day, regarding the currency loan.
Also we send you herewith a copy of a cable received to-day from Messrs.
Morgan, Grenfell & Co., a copy of our reply to this message, quoting
our cable to Mr. F. H. McKnight, in Peking, a copy of which is also
enclosed.
Very truly yours,
[Inclosure 1.]
The Chinese Minister to
the Representative of the American
Group.
Legation of China,
Washington,
April 11, 1913.
Dear Sir: I am in receipt of a cablegram
from the Ministry of Finance, requesting me to invite your attention
to the currency-reform and industrial-loan agreement of April 15,
1910 [1911], to which the American group were parties, and to
inquire whether arrangements have been made in accordance with the
said agreement for the sale of bonds. As the agreement was entered
into with the four groups under the leadership of the American
Group, the Ministry is particularly desirous to be informed of the
position of your principals in the premises.
Yours very truly,
[Page 197]
[Inclosure 2.]
The Representative of the
American Group to the Chinese
Minister.
New York,
April 12, 1913.
Your Excellency: Referring to your letter
of April 11th, we beg to say that, owing to circumstances with which
your excellency is familiar, it has been impossible to arrange for
the issue of the currency loan, and, under the arrangements with
your excellency’s Government, the period in which the loan may be
issued will expire on April 14th next, a date before which, of
course, it will be impossible to make the issue.
In response to your excellency’s inquiry as to the position of the
American group, I have the honor to inform you that we have been
obliged to withdraw from Chinese business, and have therefore cabled
our representative in Peking that the American group will not
request any extension of the period within which the loan may be
issued.
We trust that this is an adequate answer to your excellency’s
communication.
Very truly yours,
[Inclosure 3—Telegram.]
Messrs. Morgan, Grenfell &
Co. to the American
Group.
Currency. Impossible to get any answer from European groups today in
time for decision. We leave it to you therefore to cable McKnight
that while willing continue advance you will take no steps continue
option. It will then be for English, French, German groups act as
they think fit in the matter and we have advised them
accordingly.
[Inclosure 4—Telegram.]
The American Group to
Messrs. Morgan, Grenfell & Co.
New York,
April 12, 1913.
Currency. Refer to your cable of today. We have cabled McKnight today
as follows:
The American Group to their
Representative.
New York, April
12, 1913.
Currency. Being obliged withdraw from Chinese business we
will not for ourselves request extension option on currency
loan and have so advised Chinese Minister Washington in
reply to enquiry from him. It is our strong desire to serve
other groups. We have therefore advised them if they should
wish extension of option, which they may, in view of
reorganization loan not being yet completed, we would be
willing extend with them our interest in advance but would
not retain interest in option. You will therefore on April
14th cooperate with representatives of other groups to
secure extension if requested by them to do so after making
our position as above clear to them and Chinese Government.
If not so requested you will on April 14th advise Chinese
Government that the American group will not request
extension of option, thereby relieving American group of any
responsibility moral or otherwise in currency loan, advance
made by us thereby becoming due and payable under terms of
agreement. In view however suggestion State Department
regarding reorganization-loan advances we will consider
reasonable extension payment of advance if Chinese so
desire. We have been unable to definitely learn attitude
other groups on this question and they may therefore
communicate instructions direct to Peking.
