File No. 893.51/701.
The Assistant Secretary of State to the British Ambassador.
In view of the possible effect upon the lives, property, and trade of its nationals in the disaffected districts of any departure from the policy hitherto consistently pursued by common consent among the powers, the American Government believes that any loans to China at the present juncture would be inopportune, except upon the conditions already laid down, namely strict neutrality as between Chinese factions and broad participation by the interested foreign powers.
While the American Government would be inclined to favor financial assistance to China on the above conditions, it is felt to be a corollary of this policy to discourage loans by its nationals unless assured that such loans are in harmony with the above views.
These considerations gain additional force from the fact that a conference is already in session at Shanghai for the purpose of arriving at an amicable settlement of the situation, and it is felt that the outcome of the conference should be awaited before taking any further steps in the matter of a loan. Financial assistance such as is now requested by the authorities in Peking might serve to hinder rather than hasten the desired settlement.
Washington , December 18, 1911.