893.51/2456: Telegram

The Chargé in China (Tenney) to the Secretary of State

Replying to Department’s September 30, 3 p.m. The following telegram was sent by the Hongkong Shanghai Banking Corporation yesterday:

“Following the examination [sic] for British and French groups. With reference to currency loan option expiring October 14, as [negotiations] for further extension would involve cooperation of Russians and Japanese which might affect freedom of action of new [Page 524]consortium and as option itself has ceased to be of practical value, we propose to let it lapse. Telegraph if you approve.”

The objection to the course proposed in above telegram is that it would give Japanese the opportunity to press their scheme for controlling the Chinese currency. Please send instructions as to Legation’s attitude.

Tenney