File No. 893.51/859.

The American Minister to the Secretary of State.

[Telegram.—Paraphrase.]

I have today received a communication from the Chinese Government undertaking to cancel the provisions of the Belgian contract relating to a loan of £10,000,000 and engaging not to repay the Belgian advances with funds borrowed from the four groups. Negotiations will now be resumed by the representatives of the groups.

Calhoun.