893.51/6428
Mr. Thomas W. Lamont to the Chief of the Division of Far Eastern Affairs (Hornbeck)
[Received August 11.]
Dear Dr. Hornbeck: Nothing new has developed here in regard to the Chinese Consortium situation. Many of the bankers and officials interested are in fact preparing for their summer holidays. I cannot learn that the British Government has received any definite response, as yet, from either the French or the Japanese Governments as to the suggestion made to the American Government that if all four Governments concurred, the four banking groups should be advised to devise measures for the dissolution of the Consortium.
This being the case, I feel that the matter should not rest in abeyance too long, because, as it stands to-day, the Consortium is a perfectly anomalous and amorphous creature. I think it would be much better to break off with the old definitely once and for all and then take up the question of the new Association.
Perhaps the Department has already considered the advisability of making enquiry from the British Foreign Office as to the nature of the responses, if any, from the French and Japanese Governments; it might conceivably be in order to suggest that if no reply has been received, the matter be followed up in due course so as to gain some definite idea of their attitude. I have the feeling that if the British interests would handle the matter of the French Government it would not perhaps be too difficult for us to handle the Japanese end of the matter. But I would like to see progress made one way or the other.
I quite realise that in the present tense situation of China, this question of the Consortium is a trifling one but nevertheless it is worth while cleaning up.
With personal regards [etc.]