861.77 Chinese Eastern (Loan) 1932/3: Telegram
The Chargé in France (Armour) to the Secretary of State
[Received June 8—2:30 p.m.]
366. Department’s 215, June 7, 6 p.m. I took up the question of the Associated Press report with the Foreign Office this morning and was informed that this is a matter with regard to which an official denial has already been issued at Tokyo by the French Ambassador, at any rate of that portion of the report which would indicate official French support of any loan. The officials with whom I spoke said that while of course it was impossible to prevent private banks from sending their officers to Japan and even negotiating loans of a nature not requiring government approval the French Government from the beginning of the Sino-Japanese conflict has taken the position that no loan to either belligerent can have the French Government’s approval adding that there would be even greater opposition on the part of the French Government to a loan to Manchoukuo. Officials at the Foreign Office with whom I spoke felt that the Franco-Asiatic Bank, which is a bank of very little importance, is not in a position to make a loan of any consequence from their own resources and that the only alternative, a public issue, would not be sanctioned by the French Government. They authorized me to assure you that they feel that no loan that could possibly be of any real value to Manchoukuo or that could in any way assist in the consolidation of the situation in Manchuria will be forthcoming from private French sources and that no financial assistance of any kind would secure official French approval.
I expect to have further information from reliable banking sources [Page 69] with regard to the Franco-Asiatic Bank which took over, I understand, the interests of the Russo-Asiatic Bank and particularly with regard to Massenet himself. This will be forwarded in a separate telegram.