893.51/2962: Telegram
The Acting Secretary of State to the Minister in China (Crane)
249. Your 250, September 9, 5 p.m.
Lamont, in behalf of American Group replies as follows:
“Have seen the telegram to Bruce and understand that he is advising Peking, just as you have already been advised by the Department, that arrangements have been made whereby American Banking Group may take over the Pacific Development Company’s [Page 661] position with respect to loan contract along lines already advised to Minister, and with which he was in sympathy.
Please advise Minister that International Consortium is to have a meeting in New York in the middle of October at which time the American Group will present this matter to the whole Consortium, with which it must act in accord; any favorable action must necessarily be dependent upon several factors, including the then public attitude with relation to the Hukuang matter, the precise situation regarding the revenues from the Wine and Tobacco Administration, which figures we would hope then to have available, and the state of the investment market.
Please convey to Minister my personal expression of respect and esteem, and assure him that our wishes are to assist him in every way possible.”
With reference to two cables of September 15th from Williams to Bruce relative to possible Cabinet crisis24 the American Group offer the following comments which you may make the subject of oral representations to the Minister of Finance:
“Have seen cables from Williams to Pacific Development Corporation referring to the danger of change in Ministry of Finance if second installment of loan under Pacific Development Corporation’s option is not available by September 26th. American Group express themselves as most sincere in their desire to work out some loan arrangement but obviously cannot independently of other groups which will meet here next month. While obviously impossible for American Group to give assurance of immediate loan it seems clear that every effort will be made to reach some basis of operation.”
- Not printed.↩