File No. 893.51/939.

The American Ambassador to France to the Secretary of State.

[Telegram.—Extract.—Paraphrase.]

Japanese are prepared to sign at once six-group agreement under following conditions: clause 6 to be deleted and minutes of the conference to express the following:

The Russian group declared that it takes part in the loan on the understanding that nothing connected with the projected loan should operate to the prejudice of the special rights and interests of Russia in the regions of northern Manchuria, Mongolia, and western China, and the Japanese bank declared that it takes part in the loan on the understanding that nothing connected with the projected loan should operate to the prejudice of the special rights and interests of Japan in the regions of South Manchuria and of the eastern portion of inner Mongolia adjacent to South Manchuria.

The British, German, French, and American groups stated that they were not in a position to express their views upon either of these declarations upon the ground that they were not competent to deal with political questions.

Herrick.