893.516/62: Telegram

The Minister in China (Reinsch) to the Acting Secretary of State

Please communicate to International Banking Corporation the following substance:

In connection with our conversation of August last I wish to inform you that a syndicate of Chinese has been formed for the purpose of establishing a Sino-American industrial bank with branches. Syndicate is composed of leading merchants Shanghai, Tientsin, Hankow; President; Premier; ex-President Li. Purposes commercial and industrial banking, capital subscribed $5,000,000, one half ready to be paid in. No such combinations ever before formed nor similar offer made any nationality. Founders will obtain bank charter from the Chinese Government for banking and trust company business with intention to emphasize the latter. They are ready to incorporate with Americans equal shares under American law a corporation to take over the Chinese charter. All business to be subjected to joint control American and Chinese representatives. Connections assure large business from the start. Will you, either alone or with banks, form American associate? Request early answer which I shall await before taking up with others as you have expressed an interest in this matter. I believe the business of the new institution would affect favorably your existing banks. It would appear that if your corporation should participate the necessary capital could be raised immediately among concerns interested in China.