893.51/2192: Telegram
The Acting Secretary of State to the Minister in China ( Reinsch )
Your April 26, 5 p.m.
The Chinese Government has already been assured of financial assistance needed for constructive purposes so soon as a reunited Government has been formed. The Department fears that only the pressure of necessity will bring the various factions in China together and that any special encouragement given to either side merely tends to delay the final settlement which must be reached before financial assistance can be available.
The Department and the American bankers feel greatly encouraged over the recent progress made towards the completion of the consortium. Everything is being done here to hasten matters. Mr. Lamont is in Paris representing the American Group and records have gone forward to be immediately available for the meeting. It is the hope and belief of the Department that the new consortium will be ready to consider the legitimate needs of a reunited Chinese Government as soon as they are made known.
Would it not be advisable, therefore, for the Peking representatives of the respective financial groups to confer freely but informally and, on the assumption that a meeting of the groups will shortly convene in Europe, prepare definite recommendations covering the following points:
- First; the amount, terms, security, purposes and allocation of a new reorganization loan to the Chinese Government when a reunion has been effected. The statement prepared by Hillier98 might serve as a basis of discussion;
- Second; the amount, terms and purposes of preliminary advances that may be required after reunion has been accomplished and pending the negotiation of the reorganization loan.
If such conferences have already been held please cable briefly the results.
- E. G. Hillier, representative of British banking group.↩