File No. 5315/619.

The Secretary of State to Chargé Blanchard.

[Telegram.—Paraphrase.]

Mr. Knox says that by referring to the department’s previous telegrams it will be clear that the Governments of the United States, Great Britain, and Germany have already reached an agreement as to the Hukuang loan and are now ready to instruct their respective groups to sign, and that the French group alone are reported to raise objections which pertain to the possible future extension from Ichang to Ch’eng-tu. Directs him to submit to the French foreign office that the Government of the United States would be constrained to feel keen disappointment if the Government of France did not assume an attitude as conciliatory to American interests as that of the other cooperating powers by causing their bankers to sign immediately the original and supplementary agreements as they stand, leaving the details of possible future concession for extension to be settled later on by private arrangement.

Adds that in view of the increasing opposition in Chinese Provinces the Government of the United States believes that it would be for all concerned a misfortune of the most far-reaching consequence [Page 214] if the French Government failed now to cause their bankers to complete the arrangement without further delay.

Mr. Blanchard is instructed to impress this upon the foreign office and report the prospects. Informs him that Great Britain is making similar representations, and it is believed that Germany will also join.