The British Chargé (Lindsay) to the Secretary of State
Sir: With reference to previous correspondence on the subject of the loan to China, I have the honour to inform you, by direction of my Government, that the British group have learnt that the American group are unwilling to carry the British share of the loan.
I am directed to express the hope that this is not really the case, but if it should be so, His Majesty’s Government would be glad to learn the reasons which have actuated this change of front.[Page 616]
It should be pointed out that the present state of the exchange in China and of the silver market makes it important, not least in the interest of China herself, that the original proposals of the United States Government as set-forth at the end of paragraph 1 of the memorandum enclosed in your note No. 277 of October 8th,60 should be adhered to.
If the reported attitude of the American group is due to the fact that a loan for Egypt has lately been floated in London for an even larger amount than is now contemplated for China, then I beg to point out that the Egyptian [Vickers]61 loan was essentially different in character, especially as the proceeds of it will be spent almost entirely in the United Kingdom, so that it does not involve remittances abroad to the same extent as the loan to China.
I have [etc.]