893.51/2240: Telegram

The Acting Secretary of State to the Minister in China (Reinsch)

The formation of the new international consortium for rendering financial assistance to China is making such favorable progress that you may discreetly intimate orally to the Chinese [Page 437]Government that it may be desirable that negotiations for any large loans which may be required should be conducted in America or in Europe directly with the bankers principals rather than with their representatives in China. Report results. You will please bear in mind that New York or Washington will be the most appropriate places.