893.51/3097
The American Group to the Secretary of State
[Received December 2.]
Sir: We duly received your letter of November 26th, (FE–893. 51/3073),31 and have to thank you for sending us paraphrase of telegram, [Page 672] dated November 19th,31 from the American Legation at Peking, referring to the attitude of the Chinese Minister of Finance with respect to the initiation of negotiations for a loan secured on the wine and tobacco revenue.
We received last evening a further telegram from our representative in Peking, from the copy of which enclosed31 you will observe that the Minister of Finance decided to invite the Groups’ representatives to confer with him; the net result of the Conference is that the Chinese Government declines for the moment to consider the constructive program which the Consortium has laid before it. It is plain therefore that for the time being the Consortium and the American Group have done all that they possibly can do in the premises. The Peking Government manifestly desires no constructive effort at the present time, but rather seeks simply a loan for administrative purposes, the bulk of which, in our judgment, would probably be wasted. Until the Peking Government finds by experience that Japan will no longer advance loans for administrative purposes, and that the only way the Consortium is prepared to make loans is for constructive purposes directed to the upbuilding of China, we shall be unable to make further progress. Respectfully,
For the American Group