893.51/2519a: Telegram
The Acting Secretary of State to the Vice President of the Continental & Commercial Trust & Savings Bank of Chicago (Abbott)
The Department has learned with keen disappointment that question has been raised as to assignment of salt surplus as security for proposed loan under Article 3 of your contract of October 20th. The [Page 533] uncertainty and prospect of delay thus introduced are embarrassing to Department which had considered that urgency of the Chinese Government’s necessities would warrant modification of previous insistence upon principle of international financial cooperation, as delay interposed by Chinese Government tends to invalidate reasons for that departure from previous policy.
Department under these circumstances deems it proper to accede to a proposal of British Government for an immediate advance of £5,000,000 by the banking groups of the four interested powers to be made without prejudice to discussions now proceeding for formation of new Consortium. To this end Department has to request that your bank postpone at least temporarily its confirmation of loan contract of October 20th and proceed only to issue of smaller loan contracted October 11th for the redemption of bonds maturing under its loan of 1919.