in June last, by Mr. Hornbeck, in which Mr. Hornbeck had outlined
the attitude of the Administration toward the Consortium, toward
the American Group, and toward the question of continuance of the
Consortium and of the American Group's membership therein. He
said that the continuance of the American Group's membership was
somewhat "specious" inasmuch as under the present law in this country
the member banks would not be able to float portions of loans, if and
when loans were made to China-for the reason that they are for-
bidden to issue securities. (Note: There followed some discussion of
this point.)
  Mr. Lamont continued to the effect that the Consortium had been
created in consequence of suggestions made by the American Govern-
rIent (in 1918) and that the American Group had taken its place and
part therein at the instance of the American Government; that, al-
though, as had been stated by Mr. Lamont to Mr. Hornbeck in June,
the continuance of that membership and the maintenance of the Con-
sortium entail some expense without any tangible return, he and some
other of the responsible personnel have felt that, if the present Admin-
istration prefers that there be made no change (for the present at
least) and thinks that continuance in existence of the Consortium
inay serve a useful purpose and that perhaps some day the Consortium
may do something constructive, the thing for them to do is to "con-
tinue". They therefore have not raised with other and less interested
parties the question of possible discontinuance; and they have said to
interested persons who have inquired that the present would not be
an opportune time to make a change, that a change might be misunder-
stood in the Far East-especially in Japan, that this would perhaps
create new difficulties (if only those of explaining) for the American
Government, and that therefore no change should be made.
  Mr. Hornbeck said that he was very glad to hear that the matter
had thus unfolded, that he personally found this attitude and these
developments gratifying, and that he thought that knowledge of them
would be gratifying to the Secretary of State and the President.
  II. Mr. Lamont then proceeded to give an account of the activities
of Mr. Jean Monnet. He said that Monnet had been in 1919 "first
choice" for the position of secretary general of the League of Nations,
but that Monnet had declined-after which Sir Eric Drummond had
been chosen and appointed. Monnet had, however, developed and
maintained an active and serious interest in the League. Monnet
had become a friend of Rajchman. Rajchman had been chosen by
the League for work in China. In 1931, when the Japanese operations
in Manchuria began, Rajchman-knowing China and not knowing
Japan-had become an active partisan and participant in political
developments. In particular, T. V. Soong and Baron Shidehara had



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