893.51/2640: Telegram
The Acting Secretary of State to the Chargé in China (Tenney)74
25. Your telegram of January 27th, 5 p.m. The following telegram from Morgan & Company in behalf of American Group is forwarded to you for your information and guidance.
“In reference to proposed emergency loan for 5,000,000 pounds sterling to China the American Group has now determined, assuming the Japanese group concurs, to offer in conjunction with Japanese group such proposed loan; the two groups just mentioned under-taking [Page 623] to offer the British and French quotas of the said loan. Yokohama Specie Bank as head of Japanese group has [been fully informed and while no answer from Japanese Group has yet been received American Group assumes proposed loan is agreeable to it],75 especially in view of cable received by the American group January 26th from London reading as follows ‘Hongkong and Shanghai banking corporation informs us Japanese Minister Peking has been instructed to cooperate with other three ministers upon the understanding that advance from the consortium will be forthcoming without further delay.’
For your information American group has received from London today additional message reading as follows ‘Japanese Minister for Foreign Affairs now informs Hongkong and Shanghai Banking Corporation that by words “without further delay” he means before the close of the Chinese Lunar year that is February 19th. You will recollect that this date was also mentioned by the Chinese Minister of Finance as reported in Peking message.’ Therefore you will kindly inform the Chinese Ministry not only that America is not blocking proposed loan but on the contrary is making every possible effort to facilitate it, having gone to the extent of offering in conjunction with Japan to take over the British and French quotas. It would however appear almost impossible that negotiations should be so facilitated as to permit of advance actually to be made by February 19th. The American Group is today cabling the International Banking Corporation Peking to act for it in negotiations for the proposed loan and it will of course depend upon the attitude of the Chinese Ministry towards the proposed terms as to whether the loan can be issued in the near future or not.
For your further information Lamont of Morgans will in behalf of the American group sail for Japan from Vancouver February 19th and after stay in Japan plans to proceed China for conference with leading officials there in the hope of arriving at a clearer understanding on all pending matters.”
Repeat to Tokyo as Department’s 30.