File No. 893.51/931.
The Secretary of State to the American Ambassador to Great Britain.
Washington, June 10, 1912.
According to information privately received by the Department, the bankers’ negotiations in connection with the Chinese loan may be delayed indefinitely or even disrupted by the insistence of the Japanese and Russian financial agents upon recognition in the bankers’ agreement of the political rights of Japan and Russia in Mongolia, Manchuria and elsewhere. The attitude of these representatives is taken in pursuance of instructions from their Governments.
The position of the Government of the United States in regard to these political questions is that they should be the subject of an understanding between the Governments concerned rather than between the bankers, although the bankers would doubtless be expected to subscribe to the agreement reached by the powers. The Department understands that this position is also that of the Governments of France and Great Britain.
This question you may promptly and confidentially discuss with the Foreign Office, in order to see if the Foreign Office can do something toward reaching an understanding about it with the Governments of Japan and Russia, if possible before the next session of the bankers’ conference on June 15.