893.51/3412: Telegram

The Ambassador in France (Wallace) to the Secretary of State

332. Lamont sends following for your information and transmission to American group in New York:

“The British and French banking groups of Chinese consortium suggest passage of following resolution by all groups and same is submitted herewith to American group for its approval.

The inclusion within the scope of the consortium of all industrial contracts which involve a public issue in markets outside of China may give rise to questions which have an international bearing of such a character that they might usefully be subjected to examination by the consortium.
For this purpose it is proposed to form a council composed of delegates of which one shall be nominated by each of the groups.
The council shall have no executive powers. Its functions shall be consultative and advisory to examine any questions submitted to it and to report thereon.
The ordinary meetings of the council shall be held at regular intervals but not less than three times a year. Extraordinary meetings shall be convened at any time on the demand of the delegates. Notice of any questions to be placed on the agenda paper of the next meeting shall be given in writing to the central agency of the consortium at least one week in advance.

This plan of more frequent conference by groups was suggested in personal conversation in London by Sir William Tyrrell of Foreign Office to Addis and Lamont. Tyrrell felt that if consortium meetings were held irregularly and only at long intervals when some one matter of pressing importance brought the delegates together they would lack touch and to make the international group a really effective one in carrying out the purposes originally outlined by American Government and cordially concurred in by the other governments more frequent stated meetings should take place. Probably these meetings will be held alternately in New York, London, Paris, making at least three per annum. Tyrrell added that while this was in no sense a Foreign Office suggestion yet his personal view was that more frequent meetings would be helpful to the general political situation in the Far East. Addis and Lamont cordially concurred in plan and so does French group. French Foreign Office has, Lamont understands, also expressed itself cordially in the matter to French group. The memorandum above quoted furnishing basis for affirmative action by American group has been seen by British [Page 366] Foreign Office but the official approval neither of it nor of the other governments involved is requested inasmuch as it is assumed that they are all in accord with any method the group may devise for more intimate touch and workings. Because however of the source from which this suggestion informally emanated Lamont deemed it best to send the proposal to the American group through the Department rather than direct. Proposal will now also be transmitted to Japanese group representative in London.”