894.51 Or 4/23
The President of the Riggs National Bank
(
Milton E.
Ailes
) to the Economic Adviser of
the Department of State (
Young
)
Washington
,
February 17,
1923
.
Dear Dr. Young: Referring to my conversation
with you yesterday, I enclose herewith copy of letter I have just
received from Mr. Victor Schoepperle, Assistant Vice President of the
National City Company, New York, giving further information touching the
question of the use of the proceeds of the proposed loan to the Oriental
Development Company.
Very truly yours,
[Enclosure]
The Assistant Vice President of the National
City Company, New York (
Victor Schoepperle
) to the President of the Riggs National Bank
(
Milton E.
Ailes
)
New
York
,
February 16,
1923
.
Dear Mr. Ailes: With reference to your
inquiry as to the use of the proceeds of the proposed Oriental
Development Company loan, we are pleased to submit the
following:
Our representative at Tokyo, having received a written statement from
the officials of the Company based on the sanction of the Minister
of Finance that the proceeds will be spent in Japan and its
colonies, [Page 505] has presumably
not been advised as to the exact application of the proceeds. The
Oriental Development Company was, of course, formed for the specific
purpose of developing Korea (which is part of Japan proper),
particularly along agricultural lines. Therefore, in view of the
Government guarantee and the sanction of the Finance Minister
authorizing the statement made by the Oriental Development Company
that the proceeds will be spent exclusively in Japan, we can hardly
believe that the Government would permit the use of the proceeds for
any but productive purposes, and we cannot believe that the Oriental
Development Company would use the funds for any purposes other than
those above referred to.
The Japanese interests who have approached us on this matter are of
foremost importance in Japan and, needless to say, we feel that they
will appreciate the serious consideration which the State Department
is giving this matter, particularly in view of the position taken by
the Japanese Government, in sanctioning negotiations in the American
market.
Very truly yours,