File No. 893.51/1945a
The Acting Secretary of State to the Ambassador in Great Britain (Page)2
512. Yesterday the Department gave to the press a statement concerning the formation of a group of banks to undertake loans to [Page 182] China setting forth the fact that China entered the war largely because of American action and that the United States was interested in helping China to equip herself properly for her part in the war, that until now our Government has been too much absorbed in its own preparations to devise, plans to help China. Now, however, the war [is] approaching China’s borders so that means must be placed at her disposal, hence the formation of the group. The agreement between the Government and the group provides that:
- 1.
- The group shall contain representatives of various sections of the country;
- 2.
- The group will cooperate with the Government and follow its policy;
- 3.
- The names of banks to be included will be submitted to the Department for approval;
- 4.
- The terms and conditions of loans will also be submitted to the Department for approval;
- 5.
- The Government will take every possible step to insure execution of equitable contracts made in good faith by its citizens in foreign lands.
It is hoped that the American group will be associated with bankers of Great Britain, Japan, and France.
Negotiations with the Governments of these countries are now proceeding looking towards such cooperation. The community of interest now existing between these Governments is an added reason for such association and renders such cooperation easier than heretofore.
- The same, on the same date, to the Ambassadors in France (No. 5158) and Japan (unnumbered).↩