The Chargé in Japan (MacMurray) to the Acting Secretary of State
[Received February 16, 8.55 p.m.]
The following from Abbott for the particular attention [Third] Assistant Secretary of State.
As a result of conferences with the Minister of Finance and the Acting Minister for Foreign Affairs they stated that they have no diplomatic objection and cordially approve of the American plan in principle. They will recommend the Cabinet concur and take appropriate action referring the subject to the bankers to work out details and advising Washington, London, Paris. They agree that both political and industrial loans are to be included and also agree to the surrender of options and the recasting of unfair agreements. Four power group is to supervise all undertakings and a conference of representatives of groups at New York is to arrange details.
A place must be reserved for the Russian group when a recognized government is established. Russian Ambassador last September filed a vigorous protest of which the Japanese Government took note.
Exception is to be made in the case of small undertakings to be limited by the amount of contract, say a quarter million dollars gold, subject to the regulations of the four power group.
I am to have a conference tomorrow with Premier Hara and leave about the 21st for Shanghai. Please advise Lament.73 Cable any suggestions.[Page 424]
Tokyo and Osaka are expecting large failures, perhaps including banks in consequence of drop if [sic] in material values and over extension of credit and unexpected armistice.
Answer in care of Embassy.
- Thomas William Lament, chairman of American group.↩