893.51/2132d: Telegram

The Acting Secretary of State to the Ambassador in Great Britain (Davis)74

4590. As a result of various conferences concerning the practical working of the proposed international consortium it has been suggested that the question as to what joint agreements75 should be included and what options surrendered could be most easily settled through negotiations between the four financial groups, their conclusions to be of course subject to the approval of their respective governments. This suggestion has the approval of the Department and the representative of the American Group has been so advised. Please communicate this information to the Government to which you are accredited and request it take similar action as regards its financial group, if it sees no objection to the proposed procedure. The Department believes this is a very practical forward step at a time when the situation in the Far East renders it more important than ever that a general agreement be reached regarding financial assistance to China, and wishes to emphasize the point that in the judgment of the various financial groups the method which we have hitherto followed of attempting to have the Governments settle be forehand questions as to options and so forth may result in still further delay in the active work of the proposed consortium.

Repeat to Embassy, Paris, as No. 7488 for information.

  1. See last sentence for instruction to repeat to Paris. The same telegram, except for the last sentence, sent on the same date to the Chargé in Japan, with instructions to repeat to Peking for information.
  2. According to a telegram to the Ambassador in Japan, Mar. 15, 7 p.m., this should have read “loan agreements.” (File No. 893.51/2150.)