893.51 Manchuria/22
Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck) of a Conversation With the Second Secretary of the French Embassy (Bousquet)
M. Bousquet called and stated that the French Government had under consideration information from the Far East to the effect that Japan was going to make a loan to Manchoukuo. The French Government regarded the project as contrary to the provisions of the International Banking Consortium agreement, to which Japan is a party.36 They “were going to object to it”. They wished to know what was the attitude of the United States with regard to the contemplated loan.
As M. Bousquet was making this statement from a file of papers which he had in hand, Mr. Hornbeck asked him to dictate an informal aide-mémoire stating exactly what were the circumstances and specifications of the inquiry to which the Department should give consideration. M. Bousquet then dictated as follows:
“The Bank of Indo-China has received information that Manchoukuo had entered into negotiations with a Japanese syndicate for the floating of a loan amounting to 30,000,000 yen. The Japanese group contends that this loan does not pertain to the International Consortium [Page 378] because of the independence of the Manchoukuo government and of the latter’s recognition by the Japanese Government.
“According to the French Government’s opinion, this contention is contrary to Articles II and IV of the Consortium agreement dated October 15, 1920. Besides, the fact that certain Japanese interests in Manchuria have been expressly excluded from this agreement shows that the dispositions of the agreement are applicable to the entire Chinese territory including Manchuria.
“On the other hand, the collateral for the loan would consist of the Chinese salt and opium monopolies derived from the provinces of Kirin and Heilungkiang.
“The French Government would appreciate it very much if the American Government could inform it of its point of view on the matter.”
It will be seen from this dictated statement that M. Bousquet’s original statement that the French Government “was going to object” was not exact—which fact was confirmed by an exchange of question and answer, in which Mr. Hornbeck inquired whether the French Government had objected, had decided to object, or was merely suggesting objection—to which M. Bousquet replied that the French Government was thinking about the matter and wished to have the American Government’s view.
The inquiry having thus been clarified and been made specific, Mr. Hornbeck said that attention would be given it and that he would communicate with M. Bousquet in due course.
- Dated October 15, 1920, Foreign Relations, 1920, vol. i, p. 576.↩