893.51/2947: Telegram
The Minister in China (Crane) to the Secretary of State
[Received September 9—1:18 p.m.]
250. For Lamont:
Referring to telegram from Chow Tsu-chi21 to Bruce.22 In a conference held at the request of the Minister of Finance he requested that in view of Williams’ installation as from September 1st, the subsequent advances provided for under Pacific Development contract and promised by the corporation be made with at least one installment previous to September 26th. Minister stated this next installment if [of?] $5,000,000 payable under contract would be utilized to restore credit of Chinese Government. Minister stated provisions of contract would be carried out from June 26, 1920, and that if contract transferred to consortium he would expect a new contract to be drawn up for much greater loan and time of payment extended to thirty years.
Minister of Finance is clearly in desperate condition. It is believed his tenure of office depends on result of this negotiation more especially as his Ministry is entirely without funds. If you consider it advisable to strengthen position [of] present Cabinet and in this way enable them to carry out their announced favorable action on Hukuang question previous to action by consortium, solution of this Pacific Development advance [is] the most adequate method without receding from your position as stated in China. Politically this advance would be advantageous and afford leverage for settlement [of] Hukuang question.