893.51/2335: Telegram
The Ambassador in Great Britain (Davis) to the Acting Secretary of State
[Received July 25, 10.35 a.m.]
2618. My telegram 144343 and despatch 432 March 19th44 regarding international consortium for providing loans to China. Earl Curzon in note dated July 22nd just received calls attention to fact that British group have unfortunately found it impossible to comply with the condition as to its enlargement, in such a manner as to render it sufficiently representative of British financial houses of good standing interested in loans to China to prevent criticism on the ground of exclusiveness, and states that he has reluctantly been forced to conclusion that in this matter it is not [now?] impossible to attain finality or to satisfy all present and future claimants to participation; that British Government would not feel justified in conferring a monopoly of official support on a group, the constitution of which conflicts with the most essential of the conditions laid down by them; that he has informed British group that British Government will continue as hitherto to afford them the fullest possible measure of support in all operations arising out of their connection with the consortium; and that the scope of that support is clearly defined in the formula contained in your 8804 July 1 to Paris45 and accepted by British Government as communicated in my telegram of July 18th, 2577,43 and my despatch 1061, July 21st. The note adds that for purpose of the consortium as proposed by the United States Government, British Government desire that British group as at present constituted should on strength of their established and predominant position in China be regarded as the representative British partner in the consortium even though they are unable to give them a guarantee of exclusive official support. American Mission and American Embassy Paris informed to-day by my despatches numbers 171 and 151 respectively.