861.77/2184
The Secretary of State to Messrs. J. P. Morgan & Company
Dear Sirs: I beg to acknowledge receipt of your letter, on behalf of the American Group of the Chinese Consortium,28 with reference to the proposed loan to the Chinese Eastern Railway. I greatly regret that the American Group has reached this decision, as I had hoped that an opportunity would be offered through the Consortium to put the Chinese Eastern Railway upon a sound basis. It is the more regrettable because of the apparently favorable attitude taken by Sir Charles Addis in writing to Morgan Grenfell and Company. I note that he says that “in view of the international importance of the line we should remain willing to render financial support in terms of Article 4 of the Consortium Agreement, i.e., ‘on the principle of complete equality in every respect.’”The international importance of the Chinese Eastern Railway is quite obvious, and I had hoped that through adequate financial support it might be made an important instrumentality of our “open door” policy.
I remain [etc.]