American Group the subject of my talks with you. I explained that
there had been evinced in some quarters of the American Group a
disposition looking towards the dissolution of the Group on two
grounds: First, that the continuance of the Group was all expense
and no income, even though the expense might not be very heavy, but
with no factor in sight that would seem likely in the near future to
reduce or eliminate it; and, second, that under the new Securities
Bill 98 all but three or four members of the American Group were
estopped from handling securities of any kind, the American Group
being composed with only a few exceptions of incorporated banks
or private bankers who are continuing their private business.
  Preserving your confidence, I at the same time explained to the
committee that in short the view of the Department of State was that
the present would be an inopportune time for active consideration of
Group dissolution, and that, therefore, we were prepared to recom-
mend for the time being that the question be held entirely in abeyance.
For your information, the Group concurred in this view, and I am
accordingly transmitting this information to you.
  As a matter of fact, in some way or other the knowledge that some
such idea has been broached has gained some little currency, because I
received a letter from the Japanese Consul General this morning, mak-
ing inquiry on the subject, such inquiry having apparently been
prompted from the Foreign Office in Japan. I am answering him
briefly to the effect that no present consideration is being given by the
American Group to any question of dissolution.
  Sincerely yours,                            THOMAS W. LAMONT
  P. S. This letter was dictated last week, but only finished yester-
day. T. W. L. Oct. 16.

800.503193/19
  Memorandum by Mr. Raymond C. Mackay of the Division of
                       Far Eastern Afairs

                                 [WASHINGTON,] October 12, 1934.
  Mr. Monnet 99 stated that the China Development Finance Corpora-
tion is progressing favorably; that an example of the sort of service
which the Corporation intends to render may be found in its present
participation, in conjunction with the Hong Kong and Shanghai
Banking Corporation, in the flotation, on behalf of the Ministry of

98 Securities Exchange Act approved June 6, 1934; 48 Stat. 881.
9 Jean Monnet, accompanied by his assistant, Mr. Howe, conversed with Mr.
Hamilton, Assistant Chief of the Division of Far Eastern Affairs, and Mr.
Mackay.



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