File No. 5315/347.
Chargé Fletcher to the Secretary of State.
Peking, July 13, 1909.
Mr. Fletcher reports that the Chinese have been informed by the bankers in Peking that European bankers failed to agree with American bankers and negotiations were adjourned sine die, and that Chang has written a dispatch to the Wai-wu Pu stating that the matter should not be delayed and urging conclusion of the present loan agreement.
Says that in order Chinese Government should clearly understand position of the United States Government with reference to not only the assurances given to Mr. Conger, but also those to himself, he read to Liang a paraphrase of telegram received July 10, and informed Liang that he understood by it the bankers were to meet in Paris and pointed out to him the deplorable effect of any action on the part of China inconsistent with the assurances given. Liang said that the matter could not be delayed indefinitely and asked that Mr. Fletcher telegraph, urging speedy settlement. Mr. Fletcher has told the British minister he hoped China would riot be pressed by the bankers into an awkward position. The minister and representative of British bank have both assured Mr. Fletcher they had no intention to do so; nevertheless, Chang undoubtedly has been pressed by the bankers to conclude the present agreement as it stands and is impatient.