File No. 5315/301.
The British Ambassador to the Secretary of State.
Northeast Harbor, Me., June 24, 1909.
Dear Mr. Secretary: I am desired by His Majesty’s Government to say to you that there would appear to be some misapprehension in the mind of your Government as to the attitude of His Majesty’s Government. Sir Edward Grey’s idea in speaking to the United States ambassador in London was not to refer the United States to the British bank in China, but to suggest that a representative of the United States syndicate should meet in Europe representatives of the British, French, and German groups, and should arrange all details as to financial cooperation of the former on the understanding that the agreement already signed is left undisturbed. Sir Edward Grey is most anxious that an arrangement should be concluded for the participation of the American group and he still believes that this is the only means by which continued confusion can be avoided. As regards the matter of the “likin” dues which are pledged for payment of interest on the loan, (no question of interference with Chinese administration will arise. According to the agreement concluded it is provided that the hypothecation of “likin” shall not interfere in the matter with the reform of the customs or alterations in the tariff, and that, should the “likin” dues be hereafter abolished, some other security will be provided by China in its place. His Majesty’s Government understands that the French and German groups are as desirous as is the British group of welcoming American cooperation and are equally convinced that the best mode of arriving at a practical solution will be that representatives of all four groups should meet as soon as possible in conference in London or in one of the continental capitals. The United States representative would be furnished with the agreement concluded and would be supplied with all information.
[Page 166]I hope that you will see in this suggestion a means of speedily adjusting the matter, and I trust to have an early expression of the views of your Government.
I am, etc.,