893.51/5830: Telegram

The Acting Secretary of State to the Minister in China (Johnson)

383. Your 867, November 22, 4 p.m.

1.
Your attention is directed to the inaccuracy in the final sentence of the draft memorandum in the use of the words “above quoted”.
2.
In the Department’s opinion reference made in such a memorandum to Article 9 of the Loan Agreement of 1911 should consist either of a general reference to that article or a quoting verbatim of such portion of the article as may be required in the pertinent connection. In the draft under reference the first alternative could be met by omitting in the second paragraph of the draft memorandum the relative clause beginning with “which” and ending with “revenues”. In this connection your attention is directed to the draft statement suggested in paragraph 2 of the Department’s 297, August 23, 1 p.m.
3.
For your confidential guidance, both Legation and Department must be on guard in connection with this matter against being drawn by inadvertence into any statement or commitment inconsistent with the Department’s view that the construction sought to be placed by certain groups of creditors on certain provisions of Article 9 of the agreement under reference is not warranted. Every draft or proposal relating to this matter should be very carefully scrutinized.
4.
If British Legation will assent to obviously desirable changes indicated in paragraphs 1 and 2 above you may sign such a memorandum, otherwise not.
Phillips