File No. 893.51/503.]

The Russian Chargé d’Affaires to the Secretary of State.

No. 373.]

The information which has come to the Russian Government indicates that clause 16 of the contract agreed to by the Chinese Government and the Berlin syndicate of American, English, French, and German bankers for a loan of $50,000,000 includes an obligation on the part of the Chinese Government to address itself in the first instance to this syndicate for all subsequent loans destined for the development of Manchuria, and to ask its participation financially in the Chinese industrial enterprises in that region. Such a stipulation creates in favor of the syndicate mentioned a preferential position in Manchuria. It seems that the syndicate pretends to a monopoly of financial and industrial enterprises in the region in which Russia possesses important special interests. The Imperial Government has always respected the right belonging to the other nations in Manchuria, and for its part holds that there should be no disregard of its legitimate rights acquired in that country. Now, the project in question having a tendency to hinder the development of Russian interests in Manchuria by creating in favor of the syndicate an altogether exceptional position, the Imperial Government earnestly hopes that consideration will be given to the objections formulated above, and addresses itself to the Government of the United States with the request that it will not refuse to use its influence with a view to having clause 16 of the contract revoked.

Prince N. Koudacheff.