File No. 893.51/1013.

The American Ambassador to Germany to the Secretary of State.

[Telegram.—Paraphrase.]

In reply to your instruction of July 18 through Paris. The Acting Minister for Foreign Affairs, Zimmerman, informs me that the German Government is strongly opposed to the second clause of your telegram, as to leaving China free to make other arrangements to meet her immediate requirements, as it would almost certainly lead China to be dilatory in settling the main question of control, and would probably result in the hypothecation to irresponsible bankers of valuable national assets and thus further hamper future action by the powers. He considers complete control imperative in the interests of China herself as well as the world, and expressed the hope that our Government would remain firm.

Leishman.