File No. 5315/227.
Chargé Fletcher to the Secretary of State.
Peking, June 10, 1909.
Says that the department’s telegram of the 7th was communicated to Prince Ching yesterday, and that to-day he had a long interview with Chang Chih-tung, who negotiated the loan. Chang informed him that if American capitalists had come forward during the negotiations he would have had no objections to allowing them to participate, but he was of opinion the matter had now gone too far to be reopened. Says he was assured by Chang and Wai-wu Pu that other foreign loans will be needed, and that American participation in them will be welcomed by China.
Says department’s telegram of the 4th was received after interview with Chang; Mr. Fletcher conferred with colleagues and the representatives of the groups in Peking, and they are of opinion, which he shares, that American suggestion to include the whole Hankow-Szechuen line is impracticable at the present time, because the people of Szechuen are opposed to employment of foreign capital and are now raising funds from native sources for the construction of Szechuen portion of line. Adds that later on foreign capital may find employment in the construction of Szechuen portion, but at present natives of that Province are convinced that they are able to finance it.
Mr. Fletcher says the representatives of the groups here seem disposed to regard American cooperation in future business favorably, but think it is too late, as well as inexpedient, to try to delay final signature of the present agreement, which was reached after much difficulty, and that they will probably use every effort to have edict issued at once.
[Page 158]Says he has taken up with the president of Wai-wu Pu informally suggestion as to loan for entire line. The President is also of opinion the present is inopportune time to open discussion of project, but if foreign capital needed later American capital will have every opportunity.