File No. 893.51/2015
The French Ambassador ( Jusserand) to the Secretary of State
Mr. Secretary of State: My Government informs me that its attention has been drawn to the expediency of not declaring Russia, represented in this case by the Russo-Asiatic Bank, to be out of the consortium recently formed with a view to granting a loan to China. It looks upon the question as one worthy of sober consideration under the existing circumstances; that which it has given it for its part led it to the conclusion that Russian participation, although it be purely nominal at this time, would offer very great advantages.
In my Government’s opinion, the following considerations might well be borne in mind:
- 1.
- The contracts entered into by the associated banks in 1912 which created the consortium, in 1917 when their renewal made it possible to exclude the Germans, and in June 1918 for the purpose of extending the preceding agreement, all appear to place beyond doubt the right of the Russo-Asiatic Bank to be in the consortium.
- 2.
- At the time when the Allies are endeavoring to assist Russia to effect her reconstruction, no good reason could be easily seen for casting aside that bank whose capital is French for the greater part and which commands the strongest financial organization in Asiatic Russia and in the Far East.
- 3.
- The Russo-Asiatic Bank holds, under its contract with the Chinese Government, the right to issue paper money in Manchuria and is maintaining in China and Manchuria more than 85 branches, a condition which enables it to extend valuable assistance to the Allies.
Under the circumstances my Government does not think it would be fair or expedient completely to exclude the Russo-Asiatic Bank from the consortium, by applying at the same time and to the same extent the same measure to the Russians and Germans.
[Page 193]On the other hand the fact that the French and English groups while holding their rights under the contract will not assume their share in case of an early loan makes it possible not to pledge the future and to reserve under like terms the standing of the Russian group.
It is further proper to add that arrangements have been made to have that bank represented in the consortium board by a Frenchman, and that, in certain contingencies, the possible advantages of that circumstance would not redound to France alone. Besides, as a matter of course, as long as Russia is without a recognized government or a well-established financial organization in the banking business, it would be advisable for the Russo-Asiatic Bank to withhold its quota and keep in the background, but provision would be made to let it automatically resume its place and exercise its rights when Russia shall have been reconstructed and her financial conditions straightened.
In instructing me to draw the Federal Government’s attention to the foregoing considerations, my Government wishes me to ask of your excellency that you kindly consent to have this question reexamined in point of law and of fact. It expresses to me in this connection the great satisfaction it would find in having the American Government join it in agreeing to reserve to the Russo-Asiatic Bank its seat in the consortium and thus making it plain to all in the Far East that while there is not at present any Russian Government properly so called, yet the Russian nation is still existent for its Allies who wish that it may in every respect and at the proper time resume the part that belongs to it.
Be pleased [etc.]