893.51/3017: Telegram
The Minister in China (Crane) to the Secretary of State
[Received October 24—11:05 a.m.]
339. The Chinese Government has received synopsis of the proceedings of the consortium meeting. A high official informally makes following observation for Lamont’s consideration.
“The proposal to utilize the land tax as security and establish inspectorate general following Salt Gabelle precedent would endanger success of consortium through arousing popular opposition thereto and should therefore be abandoned.[”]
It will be almost impossible to secure Chinese Government’s assent to the transfer of Pacific Development option to the consortium unless at least one additional installment is paid at once and without such payment the Chinese Government will unavoidably be compelled to cancel option in order to realize on it elsewhere. The Government would greatly prefer it to be kept in American hands.
The Chinese Government strongly favors proposed Chinese group carrying out Lamont’s assurances in that connection.
[Page 665]Prospects for unification of the country under the Central Government improved at present.