893.51/4251: Telegram

The Secretary of State to the Minister in China ( Schurman )

61. My No. 46, March 10, 4 p.m.43

I am today addressing to the British Ambassador the following self-explanatory note:

“I am happy to advise you that I fully concur as to the wisdom of undertaking without delay such an examination of the possibility of a consolidation or funding arrangement such as might prove feasible for the purpose of rehabilitating the credit of the Chinese Government. To this end I am addressing the American Group of the Consortium with a view to obtaining its cooperation with the other Groups in the examination of this question by the several group representatives at Peking in consultation with the Ministers of the four Powers, as suggested by your Government.

I am also disposed to consider that the most practicable method of procedure would be, as your Government proposes, to have the four Ministers first table the loans in default, in which their respective nationals are interested, and after a preliminary examination by the Consortium Groups to ask the Chinese Government to furnish the necessary data with a view to the elaboration of a definite funding scheme. I am advising the American Group that your Government has requested the British Group to send to their representative in Peking instructions in the sense of this suggested procedure, and am proposing that they similarly instruct their Peking representative.”

I am also addressing to the American Group a request to undertake the examination of the matter in the hope that it may prove feasible to dispose of the question of unsecured debts in advance of the Special Conference, or that in any case it may prove possible to elaborate such concrete and detailed plans for consolidation or funding as [Page 534] would minimize the danger of the Special Conference being drawn into a general consideration of Chinese finances.

Repeat to Tokyo for its information as No. 32, referring to its No. 15, February 22, 11 a.m.

Hughes
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