893.51/2882
The Secretary of State to the American Group
Gentlemen: The Department of State acknowledges the receipt of your letter of July 20, 1920, with the enclosure, relative to the Pacific Development Corporation loan option.
The Department has given careful consideration to the proposals set forth in the letter of July 15, 1920, addressed to you by the Pacific Development Corporation, on the above mentioned subject.
In view of the arrangements tentatively agreed upon between the Corporation and the Group, the Department is now prepared to recognize and support the loan contract of November 26, 1919, between the Corporation and the Chinese Government.7
With reference to making representations to the Chinese Government, in cooperation with the British, French and Japanese Governments, in connection with the extension of the option of the Pacific Development Corporation, you are advised that the Department will take this matter up at once. Before consulting the three Governments above mentioned, however, the Department will instruct the American Minister at Peking, referring to the Department’s telegram of June 29, to inquire of the Chinese Government whether any extension of the option has already been granted or whether the present option will run for a period of seven months after the American Associate Inspector of the Wine and Tobacco Administration enters upon his duties. Further action in this regard will depend upon the nature of the reply from Peking.
I am [etc.]
Under Secretary