893.51/3028: Telegram
The Acting Secretary of
State to the Minister in China (Crane)
Washington, November
2, 1920—3 p.m.
308. Your 344, October 25, 9 p.m.
Following from American Group:
- “1. The attitude of the Group representatives in
Peking is of course entirely proper. Now that the new
Consortium has been fully organized the old Consortium
in effect ceases to exist, and the Group representatives
are bound to act together under the new Consortium
Agreement. As already stated, it is impossible for the
Consortium to float loans for relief purposes. No market
for such loans could be found.
- 2. American Group fails to understand the allusion to
‘stringent terms of the Consortium.’ What are the
Consortium’s terms that are thus characterized as
stringent? It is true that the Consortium has laid down
three principles of action: (1) its first object shall
be the benefit of the Chinese people, (2) loans shall be
made for constructive purposes and the objects of same
shall be carefully specified, (3) some reasonable
safeguard shall be adopted to provide that the proceeds
of loan funds are expended for the purposes
intended.”
