File No. 893.51/687.
The British Ambassador to the Secretary of State.
His Majesty’s Principal Secretary of State for Foreign Affairs has reported by telegraph to the British Ambassador that he understands that negotiations are about to be undertaken at Hankow with [Page 104] the object of arriving at a solution of the present situation in China, but that the Chinese treasury being now completely exhausted, Sir Edward Grey fears that unless temporary financial assistance can be afforded to the Chinese Government there would be small prospect of a settlement following the present armistice. It is felt by His Majesty’s Minister at Peking that he can no longer oppose an advance to the Chinese Government on condition that Yuan Shih Kai be informed before receiving any money that it must be made clear to the revolutionaries at Hankow and Shanghai that an advance is necessary in the interests of the negotiations and their acquiescence secured. Sir Edward Grey therefore hardly thinks that in these circumstances the powers concerned can maintain an opposition to the advance of a small sum by the four groups on the conditions laid down by the British Minister at Peking, and he would be prepared to notify the British group to that effect should the other Governments concerned concur. The Hongkong and Shanghai Bank, who have been approached through their Peking agent, are informing the other three groups that he is consulting the other three Governments as to the line of action to be adopted.
His Majesty’s Ambassador has been instructed to inform the United States Government of the above facts and to report their views as soon as possible by telegraph.
Washington , December 8, 1911.