893.77/1780
The American Group to
the Acting Secretary of
State
New
York, July 9,
1919.
[Received July
10.]
Sir: Referring to your letter of June 11,
1919, (FE–893.77/1775), enclosing copy of Despatch from the American
Minister at Peking relative to the terms upon which China is willing
to relinquish to the other members of the Group the German rights
under the Hukuang contract,94 we send you herewith for your information
copy of a memorandum filed with the Ministry of Communications on
May 7, 1919, by the Groups’ representatives in Peking.
Yours respectfully,
J. P. Morgan & Co.
For the American Group
[Enclosure]
Memorandum of the Representatives of the British, French, and American
Groups to the Chinese Foreign
Office95
The Groups’ Representatives find themselves at a loss to
comprehend the proposal of the Chinese Government that, in order
to acquire the rights vacated by the exclusion of the Germans,
the British, French and American Groups should reimburse to the
Chinese Government the amount of £1,500,000. This amount has
already been received by the Chinese Government from subscribers
to the bonds issued in Germany and has been expended by the
Government on the construction of the Railway.
In the opinion of the Groups’ Representatives the bonds and
coupons of the German Issue remain a direct obligation of the
Chinese Government.
The Groups’ Representatives however desire to point out that the
question raised by the British, French and American Ministers in
their communication of the 25th of March to the Wai Chiao
Pu96
is not concerned with past operations but with future rights and
[Page 587]
interests in the
Hukuang Railways in which, by reason of the war, co-operation
with the Germans has become impossible.
They note from the letter of the Wai Chiao Pu dated 24th of
April97
that the Chinese Government
“welcomes the statement that Great
Britain, France and the United States will unite in
using their best endeavours to see that sufficient funds
are furnished to ensure the completion of the Hukuang
Railway, provided it is distinctly understood that such
co-operation is confined to Great Britain, France and
the United States.”
The present proposal for the co-operation of a
Chinese Group appears to the Groups’ Representatives to be in
conflict with this declaration. They are of opinion that in any
case the discussion, at the present moment, of the readjustment
of interest necessitated by the exclusion of the Germans is
premature, and that this question should be left in abeyance on
the basis laid down in the Wai Chiao Pu letter of the 24th of
April which has already been communicated to the three
Governments concerned.
