800.503193/10

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

No. 2742

Sir: I have the honor to refer to the Legation’s despatch No. 2755, June 4, 1934,63 concerning Mr. Monnet’s scheme for inducing foreign financial investments in China, and to enclose for the Department’s information a copy of a letter from Mr. David Drummond,62 who [Page 388] accompanied Mr. Monnet to China, from which it will be noted that the “China Development Finance Corporation”, with a capital of $10,000,000, has definitely been launched.

The “China Development Finance Corporation” is said to be “Chinese in conception, capital and direction” and to constitute “an instrument for organized reconstruction”. Its purpose is said to be, in conjunction with Chinese banks and financial interests abroad, to assist and collaborate in enterprises, both private and public, for the development of commerce and industry for which long term credits are required, being particularly concerned with large scale joint financing and facilitating an ordered flow of capital into the work of China’s reconstruction.

It is too early to forecast the success or otherwise of this venture, but, according to Mr. Drummond, Mr. Monnet plans to return to the United States and Europe as soon as possible in furtherance of his plans.

Respectfully yours,

Nelson Trusler Johnson
  1. See footnote 48, p. 379.
  2. Not printed.