The British Embassy to the Department of State 32

While His Majesty’s Government in the United Kingdom are of the opinion that dissolution of the China consortium in its existing form will be necessary sooner or later, they appreciate that there is force in view that existing arrangement might be allowed to continue for the present on the ground that immediate dissolution would make more difficult the reconstruction of consortium on a broader basis at a later stage with support of Chinese Government.

The important thing is that in view of the effect on Japanese public opinion, the non-Japanese groups should act together when the time comes, and meanwhile His Majesty’s Government are inclined to the view that dissolution of the consortium would not be advantageous.

  1. Handed by the Counselor of the British Embassy to the Adviser on Political Relations (Hornbeck) on August 21.