893.51/2279: Telegram
The Acting Secretary of State to the Ambassador in France (Wallace)
8804. Your 917, June 25, 8 p.m.
If it should be necessary in order to meet the objections of the French and British Foreign Offices the Department would accept, as an interpretation of the bankers agreement of May 12, the formula proposed in your 649, June 6, 11 p.m.,32 in the following slightly modified form:
“The Governments of each of the four participating groups undertake to give their complete support to their respective national groups members of the consortium in all operations undertaken pursuant to the resolutions and agreements of the 11th and 12th of May, 1919, respectively, entered into by the bankers at Paris. In the event of competition in the obtaining of any specific loan contract the collective support of the diplomatic representatives in Peking of the four Governments will be assured to the consortium for the purpose of obtaining such contract”.
You will note that the principal change is in pledging each government to the support of its respective national group rather than to the consortium collectively. This proposed change makes the formula more in accord with the actual facts and with our established practice.
Referring to the second part of your telegram Department recommends to suggest orally to the British and French Foreign Offices [Page 462] that those Governments promptly approve and confirm the reply of the American, British and French banking groups to the effect that any attempt to exclude Mongolia and Manchuria from the scope of the consortium would be inadmissible. Such an understanding would clear the way for any further action that might be necessary or desirable. Department is preparing to do as outlined.
If the Secretary concurs in the above suggestions please instruct London accordingly.