File No. 893.51/894.

The American Ambassador to Great Britain to the Secretary of State .

[Telegram.—Paraphrase.]

The chief causes which led to the suspension of the London conference appear to be:

1.
Both Russians and Japanese claim that their respective groups should have right to issue abroad through any agencies they themselves select and not necessarily through the other groups, which is contrary to principle adopted in interbank agreement 10th of November, 1910.
2.
Japanese desired declaration that proceeds of reorganization loan would not be expended in Manchuria and Mongolia.
3.
Japanese endeavored to confine future business in this six-loan agreement to Government and provincial loans and that companies bearing Government or provincial guaranties should not be included.

Reid.