893.51/6780: Telegram
The Chargé in the United Kingdom ( Johnson ) to the Secretary of State
[Received January 19—3:51 p.m.]
74. The Embassy has learned from City sources under conditions of strict confidence that the announced intention of the American Group to withdraw from the Chinese Consortium is causing great resentment. The present time is considered particularly inopportune for this, a development following as it would on the heels of the American and British Open Door notes to Japan21 and when the question of servicing the maritime customs loans is still under discussion. Sir Charles Addis,22 who is distressed at the prospect, unfortunately has [Page 724] to sail tomorrow on a 2 months’ health cruise but he has already been in touch with the Foreign Office and the Treasury.
The City bankers concerned not only consider that such an action would in the present circumstances be of benefit to Japan and react adversely on the interests of Great Britain and the United States but are also annoyed [that] entire cause should be of such a trifling nature, namely, the unwillingness of Kuhn, Loeb and Company to pay its share of a £750 annual charge. In this connection the Hong Kong [and] Shanghai Bank finds it impossible under existing arrangements to permit a non-payment without apprising the other members and groups of the fact, as it has percolated through to the British banking interests concerned [that] the Department of State’s attitude is represented as being mildly opposed to the withdrawal of the American Group.
- For text of the American note dated December 30, 1938, see Foreign Relations, Japan, 1931–1941, vol. i, p. 820.↩
- Representative of the British Group of the China Consortium.↩