The Secretary of State to the Chargé in China (Tenney)
40. The following is to supplement our telegram 35 of February 7, 3 p.m., especially as regards the fourth paragraph of that telegram. Our determination has not been changed in any manner as regards withholding from the Pacific Development Corporation loan support in activities of any sort which might have a detrimental effect on negotiations for the final organization of the four power consortium.
The Department fears, however, from your no. 30, January 30, 5 p.m.,84 that the Government of China may be so improperly informed that it will interpret the fact that our Government has withheld support of a positive nature as equivalent to a definite determination not to regard the contract as valid. Under existing conditions we do not desire to publicly announce any position which might be interpreted as showing an intent on our part to give support to negotiations separate from those which the four powers are now conducting. The Department, however, wishes you to know that although it refuses to give positive support to the Pacific Development Corporation in conflict with the interests of the new consortium, it would have to take cognizance of a new condition should another powerful nation give to its subjects support in independent activities of this nature. Should such a condition arise, the Department would feel compelled to duly protect the contract rights of this company against any efforts to violate those rights to the advantage of interests of any other country.
You are given authority, in your discretion, should you become convinced that there is any immediate danger that such vested rights of the company will be violated, to call the attention of the proper Chinese officials to this viewpoint. In order to avoid any danger of misunderstanding, however, the Department desires that only in case of urgent necessity should you take this action.