893.51/3668: Telegram
The Minister in China (Schurman) to the Secretary of State
[Received January 3—6:45 p.m.]
4. Chinese Government proposes to the representatives new consortium issue in China of [silver] bonds approximately $96,000,000 secured for the present upon the salt revenues, later on to be charged on the customs surtax which the Chinese Government expects Washington Conference will authorize and maintain effective at an early date. Consortium representatives approve proposal, full details cabled yesterday New York, Tokyo, Europe.
I concur in the views of the consortium representatives as to the extent and seriousness of injury to consortium [prestige?] and prospects in China if Chinese proposal is rejected. While recognition [Page 762] of the consortium is not complete it is enough to constitute promising beginning. Scheme if honestly carried out will help China. Loans on the security of increased customs tariff seem the most hopeful if not indeed the only means for the financial rehabilitation of the Government. And the new Cabinet though arousing no general enthusiasm has some unusually able members and seems to aim to [at] businesslike administration of public affairs.