File No. 893.51/774.
The Ambassador of Great Britain to the Acting Secretary of State.
Washington, February 24, 1912.
Sir: With reference to previous correspondence regarding the affairs of China I have the honor, under instructions from His Majesty’s Government, to bring the following facts to your notice:
The Provisional Government at Nanking, being in immediate need of an advance of 2,000,000 taels, are prepared to accept a loan of £600,000 on the security of the China Merchants Co.’s ships.
His Majesty’s Government had already, after consulting the British minister at Peking, come to the conclusion that conditions in China have now become sufficiently settled to allow of advances being made to the Provisional Government. They have consequently given their conditional consent to the loan now proposed, but, in view of the understanding hitherto existing between the powers to discourage loans during the revolution, they have made this approval dependent upon the consent and joint action of the other three Governments. They have also stipulated that the Peking Government should give its sanction to the loan and that Japan and Russia should be invited to participate.
In proposing that this offer should be made to Japan and Russia His Majesty’s Government are animated by the desire to prevent a return to the previous policy of unprofitable competition in China. Their views on this point are, I think, already known to you, and I understand that they have the approval of your Government. I am therefore instructed by His Majesty’s Principal Secretary of State for Foreign Affairs to express the hope that your Government will agree to the proposed loan and to the participation in it of Japan and Russia. Should your Government approve this course His Majesty’s Government hope that you will see your way to send the necessary instructions to the United States representative in Peking.
His Majesty’s Government are addressing similar communications to the French and German Governments.
I have, etc.,