The American Group to the Secretary of State
[Received June 24.]
Sir: Replying to your letter of June 21st, (FE–893.51/3455), we have taken note of the Department’s suggestion that in view of the intimate relationship existing in China between the administration of the tax on land, and the domestic affairs of the country, it might be wise for the American Group to consider whether it should not take steps to dissociate itself from any proposal to administer the Chinese Land Tax.
In view of the fact that in accordance with the original suggestion of the Department the Consortium is, so far as possible, to function along the lines of a free and full partnership, thus avoiding dissentient voice, might not the better course be for the American Group to endeavor to persuade the other three Groups to rescind all references to this tax? Perhaps at an early meeting of the Consortium Council, when formed, it might be possible to record by definite resolution that the Consortium neither seeks control over, nor is at all interested in, the Chinese Land Tax, and does not expect to become interested unless China at some future [Page 369] date finds it necessary to submit that tax as possible security for a loan.
For the American Group