893.51/2963: Telegram
The Minister in China (Crane) to the Secretary of State
[Received 3 p.m.]
265. For Lamont:
Your 240, September 20th, 2 p.m.23 Statement in first paragraph Legation’s 250, September 9th, 5 p.m. is intended to mean ostensibly, [Page 660] payment of advances and all other provisions of contract run for seven months from June 26th.
The Minister of Finance yesterday handed Legation the following text [of] memorandum initialed by him and the Minister of Communications.
“The Chinese agree to honor Hukuang bonds and coupons in question while assuring owner will make a sworn declaration satisfactory to the banks stating that: (1) such bonds were acquired prior to the declaration of war between China and Germany, or (2) there exists no present enemy interest therein and that such bonds have not been acquired directly from enemy subjects. It is understood that the banking groups are prepared to give the financial assistance necessary to enable the Chinese Government to meet the additional obligations assumed hereby and that they are prepared to make immediate advances for continuing construction of the Hukuang railways.”
The Minister states that the memorandum is left with the Legation to facilitate arrangements for a temporary advance by the American banking group and he requests the Legation, in the case no advance is made, to return the memorandum to him and let the affair return to the present status quo; in the event of an advance being made the memorandum will be restated in a formal engagement.
The present acute need of money is undoubtedly the cause for this action. Again Lamont’s views are met [omission?] as to payment of the additional installments of the wine and tobacco loan contract, the obligations of which we have informed the Chinese Government the group has assumed, has been presented.
It should be borne in mind, that present Cabinet and especially Minister of Finance can only with such advances render any effective aid to consortium project which they are disposed to favor, therefore I venture to suggest that, if such action appears advisable to Lamont, an advance be made with the least possible delay.
- Not printed.↩