File No. 893.51/850.
The American Minister to the Secretary of State.
Peking, March 29, 1912.
Sir: I have the honor to report that on March 25, the British, French, and German ministers and myself called upon Yuan Shih-kai and entered a protest against the breach of the contract or arrangement made between him and the representatives of the groups, [Page 123] evidenced by the exchange of letters between him and them, dated March 9, and in support of such protest we left with him an aide-mémoire, a copy of which is herewith inclosed1 and in which the facts on which the protest was based are fully recited.
Yuan Shih-kai read the aide-mémoire and made a somewhat extended verbal reply. He said China’s need for money was very great, the amount required was very large, and, no doubt, Tang Shao-yi feared the bankers would not be willing to give him all that was required, and, an opportunity to secure more money from other sources having presented itself, he took advantage of it and made the Belgian loan. The ministers entered into no discussion of the subject.
I have not seen the Belgian loan contract, but I understand it is for a loan of $5,000,000, which is to be an advancement on an ultimate loan of $50,000,000, and without any provision for control or supervision of expenditures. * * * The Belgians are not the chief element in this loan; the Russians are behind it—at least the Russo-Asiatic Bank is the leading factor, although not a party to the contract.
I have, etc.,
- Not printed.↩