893.51/2311: Telegram
The Minister in China (Reinsch) to the Acting Secretary of State
[Received July 16, 10.11 a.m.]
China has applied to old consortium banks for advance six monthly installments, $4,000,000 each, secured on salt revenue. The British, French, Japanese group representatives have telegraphed their principals that, although they are not in favor of proposed advances, they point out that option on salt security revenue is still held by old consortium bank from the point of view of Chinese and that refusal of present application will entitle Chinese Government to apply to others. They propose that new consortium fix definite date for commencement negotiations, upon which Chinese can be informed that application will then be considered. Russian group not informed of above telegram.