File No. 893.51/305.

The Department of State to the British Embassy.1

[Note verbale.]

On the general principle that China should not disregard its international undertakings, this Government has insisted upon the carrying out by the Chinese Government of its promise to ask the United States to nominate a financial adviser.

In urging the Chinese Government to consent to the joint signature of the pending currency loan by the four financial groups, the United States attaches importance most of all to the firm establishment thereby of the principle of present and future cooperation between the four interested Governments.

It regards as also of great importance such provision for the adequate control of expenditures under the pending or any future loans to China.

In regard to China’s promise to ask the United States to nominate a financial adviser, who should be an American, this Government wishes it to be understood that when the Chinese Government shall have carried out its undertaking as to the adviser, and when the four Governments shall be agreed as to cooperation and control as above indicated, then should objection be expressed by the tripartite Governments to the selection of an American for that post, and should that objection not be met by some understanding as to similar appointments in connection with future loans, the American Government would be disposed to consult with the three other interested Governments and appoint an adviser of some nationality which is not interested in loans to China.

An early agreement in principle between the quadripartite Governments with respect to these questions of the adviser and of control of loans to China is believed by the American Government to be highly desirable for the speedy closing of the pending loan negotiations.

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Note.—The other interested Governments accepted the suggestions contained in the foregoing note verbale and on April 13, 1911, the contract (or agreement, as it is also called) for the Currency Reform and Industrial Development Loan was initialed; on the 15th it was signed and the edict of authorization was issued the same day. (File No. 893.51/384.) The complete text of this contract or agreement was inclosed with the following despatch from the American Minister; a summary of it here follows the despatch.

  1. The same, mutatis mutandis, to the embassies of France and Germany.