File No. 5315/208–209.
The Secretary of State to Ambassador Reid.
Washington, June 2, 1909.
Mr. Knox informs Mr. Reid that in 1904 the Government of the United States was informed through the legation in Peking of a promise which the Chinese Government had made in writing to the American and British ministers that in case China was unable herself to raise the necessary capital for the construction of a proposed Hankow-Chungking railway, American and British capital would be given the first chance over other foreign competitors, and that on two occasions, July 25, 1905, and September 19, 1905, the British ambassador in Washington inquired of the department whether American capitalists desired to participate in this enterprise, to which the department replied that publicity had been given the matter, but as yet the American financial groups had not intimated their intention regarding the undertaking. The department can not construe its replies to the British ambassador as indicating a relinquishment of the right of American capital to participate.
Adds that it is reported that British, French, and the German groups have now under consideration an agreement with China to [Page 146] provide a loan for the construction of certain railways in China among which is the Hankow-Szechuen line, and the department is at the same time made aware that American capital is interested in this western line to such an extent that it would be glad to cooperate with the British interests in accordance with the understanding of 1904.
Instructs Mr. Reid to bring the foregoing to the attention of the minister for foreign affairs and to cable the substance of his views.