893.51/3595

The Italian Embassy to the Department of State

A group composed of the most important Italian Banks has been already formed in order to take part in the Financial Consortium for China. The formal request for the admission has been already presented in London. Such request is determined, first of all, by the fact that we recognise the necessity of coordinating the Italian financial activity in China to that of the other Powers who are already members of the Consortium. Any independent action from the Italian side would represent a disturbing factor both in China and in the financial markets. We consider that the fundamental purpose for which the Consortium has been constituted is just the necessity of common action.

Moreover it appears to us that the admission of the Italian group of Banks would help in further strengthening the financial and nonpolitical character of the Consortium, and would render its activity more independent and more useful.

It is finally quite obvious that for natural reasons the Italian action in the Consortium would not contrast in any way with the American interest and point of view.

We should like to know whether the American Government is prepared, for their part, to support the admission of the Italian Banking Group.