893.48g/14: Telegram
The Minister in China (Crane) to the Secretary of State
[Received October 16—12:34 a.m.]
323. The Minister of Finance informs me that an official board of famine relief has been formed and that the Chinese Government intends to utilize salt revenues as security for loan of 12,000,000 silver dollars for famine relief. Proposals have been made to French, Russia[n], British, Japanese old consortium banks since salt revenues pledged to them for 1913 loan but Government suggested cooperation other banks might be asked. International consortium and Bennett26 consider it to be possible some twelve foreign banks in North China might be willing to advance six to twelve million for short term loan with repayment from proceeds of bonds or other Joan if extension desired. Old consortium as such not disposed engage new business but will refer matter to new consortium. Government’s idea sell bonds in China if western markets unfavorable. [Page 664] The Chinese Government requests my assistance. I respectfully suggest scheme offers new consortium interesting possibilities as regards bond flotation in China where desire to aid famine sufferers is wide spread.