893.51/2336: Telegram
The Secretary of State to the Ambassador in France (Wallace)46
8974. The Department is informed by the Legation at Peking, in a telegram dated July 25,47 that responsibility for [request to?] the old consortium is accompanied by a continued propaganda aimed at the new one by the Communications clique which is allied with the Japanese. The Japanese Minister has stated that while he has not offered the Chinese Government an advance on account of the old consortium he does not see any reason why such an advance could not be made.
The Department is confidentially informed in this connection that the Chinese Syndicate, which is composed of pro-Japanese elements, has handed to the President of China a memorandum to the effect that with the assistance of Japan the admission of the Chinese Syndicate to the new consortium has been arranged; that the Belgian, Japanese and French Groups have agreed to work hand in hand with the Chinese; and that while the British are doubtful a majority as above is assured. The memorandum urges the President to oppose a monopoly of industrial loans. The Chinese Syndicate proposes that it should be consulted before any loans are proposed or foreign agents engaged and that for thus acting as the agent of the Chinese Government it is to receive a commission on all loans.
The Department is further informed that a bill has been introduced in the Peking Parliament which attacks the new consortium, especially on the ground of monopoly of industrial loans.
Discreetly ascertain if the French Foreign Office has any information confirming the above report.
Repeat to London for similar action and hand copy to the Mission for information.