893.51/2363: Telegram
The Ambassador in France (Wallace) to the Secretary of State
[Received August 12, 2.45 a.m.]
1256. Your 8974, July 31, 9 p.m. [a.m.]. Informal inquiries at the Foreign Office on two previous occasions have not disclosed the knowledge by that Department of the information contained in your said 8974. In further informal [reference?] to this subject in conversation at the Foreign Office this afternoon it was stated that no information of this nature has been received nor any information from the French Legation at Peking tending to show activity on the part of the Chinese Syndicate as indicated in the report contained in the above referred to telegram.
At my request Mr. Carter has made discreet inquiry of the Banque de l’Indo Chine, representative of the French group, and states that judging from the letters from the bank’s representatives in China [Page 476] exhibited to him there seems to be no foundation for the statement in the memorandum to the effect that the French group had agreed to work with the Chinese Syndicate.
Mr. Carter informs me that it is evident from the above mentioned correspondence that the general views of the Banque de l’lndo Chine are in accord with those of our own group as to the disadvantage of [admitting] to the new consortium the Chinese Syndicate, as at present constituted. It is understood that Mr. Lamont is cognizant of the reception given to the representative in Paris of Liang Shih-yi and his associates when suggesting to the Banque de l’lndo Chine the advisability of admitting the Chinese Syndicate to representation in the consortium and of the bank’s reply that the matter should be submitted to the various groups and Governments for their consideration.
Above repeated to London for its information.