893.51/4276
The American Group to the
Secretary of State
New
York, April 30,
1923.
[Received May 1.]
Sir: We enclose copy of a cablegram (No. 4592)
just received from the British Group, to which the American Group is
giving consideration pending receipt of the reply in preparation by Sir
Charles Addis.57
Respectfully,
J. P. Morgan & Co.
For the American Group
[Enclosure—Telegram]
The British Group to
the American Group
London [undated].
[Received at New York, April
30, 1923—12:05 p.m.]
4592. Hong Kong & Shanghai Banking Corp. have received following
cable from Peking:
The following is for four groups.
[Page 541]
Re our wire of April 13th,58
result of meeting[s] with Minister of Finance April 17th,
April 27th, is that Chinese Government are prepared to
entrust immediately to the group representatives study of
unsecured debt position including Railway debt and furnish
them with official assistance, necessary data and to entrust
to consortium, provided conditions are suitable issue of
consolidation bonds when plans have been approved by Chinese
Government. Minister of Finance expressed desire in view of
large proportion of domestic debt that Chinese Banks may be
allowed to participate. The foregoing is entirely contingent
upon the consent of the groups to authorize monthly advances
averaging silver $3,000,000. for ten months including unpaid
arrears for March and April secured on Salt Revenue
repayment commencing January 1924 with alternative of
repayment from debt consolidation bond issue. Advances are
required exclusively for civil, administration, police and
maintenance of peace and order in Peking. Expenditures will
be made in accordance with list to be presented to
Parliament and will be audited by Board of Audit and
published in Government Gazette. Minister of Finance asks
for reply at earliest possible date and intimated he cannot
wait longer than a fortnight. He has received telegram from
Chinese Minister, London, communicating offer from Crisp of
loan with immediate advance, and have also offer from
Chinese Banks but realises that it will be safer in the end
if he can come to terms with the Consortium. As evidence of
serious intention of Chinese Cabinet, we should mention that
Minister of Finance has requested us to proceed with
drafting of agreement in order that it may be presented to
Parliament immediately upon receipt of your reply agreeing
to advances. On our part we are convinced that the present
willingness of the Chinese Government at length to deal with
the consortium should be met without hestitation and we
strongly urge you to send us reply at the earliest possible
moment authorizing us proceed on the lines indicated. If it
does not suit the groups to remit funds, we suggest banks
here could make the advances against Chinese Government
silver bonds to be placed on market in China as
required.
Sir Chas. Addis is preparing for consideration of groups’ proposed
joint reply which will follow later.
