893.51/2882
The American Group to the Secretary of State
[Received July 21.]
In re Pacific Development Corporation.
Sir: The Managing Committee of the American Group has had several discussions with the above named corporation, the result of which is a letter from the Corporation addressed to us, of which we attach copy for your own information and permanent files.6 We should be obliged if you will peruse this copy carefully and let us know whether or not, in your judgment, it meets the situation.
The gist of our proposed agreement with the Corporation is that they shall at once give the American Group, and therefore the Consortium, an option to be good until November 15th next on their whole position with respect to the Peking Government, the present loan, the present option, the Wine and Tobacco Tax, etc. As consideration for their doing this, we agree to find facilities for making a loan to the Corporation, secured by their holding of Chinese notes.
If you approve this, we shall, in behalf of the American Group, confirm it and you will then be in possession of a tangible basis to warrant you making such representations as you see fit to the [Page 650] Foreign Offices of Great Britain, France and Japan, so that they may join you in whatever attitude you take toward the Peking Government on the proposed extension, which the Peking Government ought to grant on this option.
Very truly yours,
For the American Group
- Not printed.↩