893.51/6982
Memorandum by the Adviser on Political Relations (Hornbeck) of a Conversation With the Counselor of the British Embassy (Mallet)
Reference, British Embassy’s aide-mémoire of February 10, 1939; Department’s aide-mémoire to the British Embassy of February 16, 1939; and letter from Mr. Thomas Lamont to Mr. Hornbeck of July 31, 1939.
In the light of what is contained in Mr. Lamont’s letter under reference above, and after conversation with Mr. Hamilton and authorization by Mr. Welles, I asked Mr. Mallet to see me.
I reminded Mr. Mallet of the aide-mémoire which he had handed me on February 10 and the aide-mémoire which I had handed him in reply on February 16 relating to the question of the possible dissolution of the China Consortium. I said that the Department would appreciate having at this time an indication of the British Foreign Office’s opinion, without consultation of or reference to the interested Banks, whether it would be generally helpful at this time for there to take place—and presumably be publicly known to have taken place—a dissolution of the China Consortium. I said that when we had the Foreign Office’s reply to that question we might wish to propound another question. I added that, in the interval, it might be helpful for Mr. Mallet to say to the Foreign Office that, as regards our opinion [Page 735] here, we do not perceive that at this time dissolution, and public knowledge thereof, of the Consortium would be generally helpful.
Mr. Mallet said that he would make the inquiry at once.
I asked Mr. Hamilton to come in and in Mr. Mallet’s presence reviewed the conversation as recorded above. I repeated that we would like to have the Foreign Office opinion independently of banking opinion.