Messrs. Sullivan & Cromwell to the Secretary of State

Dear Sir: We are representing a group of American interests, who are considering subscription to one-half of the capital stock of the Chinese-American Bank which has recently been chartered by the Chinese Government at Peking. The charter of the bank provided, among other things, that one-half of the stock should be owned by Americans. The American Minister at Peking received an official copy of this charter from the Chinese Government and, we understand, communicated fully to the Department of State at Washington with regard to the subject. A number of the cables which came from the American Minister to the Department of State refer to Mr. E. B. Bruce, who is the President of the Pacific Development Corporation, one of the American interests concerned.

The American Minister at Peking has stated to our representative there that he has forwarded to the State Department a full statement of just what would be the status and rights of Americans becoming stockholders in the proposed bank and suggested to our representative that we secure from the State Department this information.

We desire particularly to be advised as to the view of the Department of State with regard to the extent and nature of the protection which would be accorded to the American-owned stock of the bank.

In view of the fact that the charter of the bank acknowledges American owned stock, would all matters pertaining to American rights in the bank, derived through this stock ownership, come automatically under American jurisdiction?

In view of the expected arrival in this country of Chinese representatives to carry on the negotiations relating to the bank, we would appreciate your kindness in advising us with reference to this subject as early as your convenience will permit.

Respectfully yours,

Sullivan & Cromwell