File No. 893.51/1927
The American Group to the Secretary of State
Sir: On behalf of the parties addressed we have to acknowledge receipt of your letter of July 9, 1918, in reply to ours of July 8.
Your letter conveys most satisfactory assurances on the matters which we have considered fundamental. We expect within a day or two to submit to you for your approval the names of those institutions which we should expect to associate with ourselves in the proposed Chinese group.
We are communicating with the British and French members of the former six-power group in regard to a renewal of that agreement [Page 178] so far as it concerns Great Britain, France and the United States; and we understand that we shall hear from you as to the willingness of Japan to join in that agreement.
We also understand that we shall receive either from the Chinese Government or from your Department, a definite request from China in regard to her immediate necessities, coupled with a complete statement of the purposes for which the money is to be used and the security to be pledged therefor.
We are further advised by Mr. Williams of your Department that it is the desire of the State Department that the group shall appoint an agent to represent it in Peking. We shall be ready to do this at such time as it seems desirable but we would call your attention to the fact that if progress is to be made in the immediate future on a loan to China it would be necessary for the negotiation to take place in America, preferably in New York or Washington, since a considerable amount of time will be required for an agent to be appointed and to organize his work in China.
In regard to the relinquishment of present options, this matter can probably be arranged so far as it concerns foreign holders of such options by making such a relinquishment a part of the four-power group agreement. We are obliged for your offer of help in this matter and should any difficulty develop we shall unhesitatingly ask you to take such action as may be appropriate in that connection.
Yours very truly,
On behalf of the American Group