File No. 893.51/1204.
The American Minister to the Secretary of State.1
Peking, December 30, 1912.
Two points that may prove obstructive have been raised in the loan negotiations, which were apparently progressing to agreement. The French have insisted that losses incurred by foreigners during the revolution shall be paid out of loan proceeds; otherwise the loan will not be listed in Paris. The Minister of Finance disclaims authority to negotiate on the subject, and also refuses to accept the provision in the contracts for foreign auditors and foreign supervisors for salt gabelle. The bankers referred both questions to their six Ministers, who met this afternoon. Suggestion was made at the meeting that the amount of the revolutionary claims was not known; that many were doubtless exaggerated or without merit; that the question of liability in many cases was involved; that the amount of the proposed loan was not sufficient for claims and other pressing necessities; therefore the Chinese cannot be expected to make commitment on the subject at this time. Finally the French and Japanese Ministers were [Page 145] appointed a committee to discuss both questions with the Minister for Foreign Affairs with a view to making some arrangement for recognition of general principle of liability for claims and possibly for the appointment of an international commission to pass thereon and also for a commitment to the Ministers upon the subject of auditors and supervisors wherein their duties and authority will be specified. If this plan succeeds—which is doubtful—it is proposed to accept it in lieu of any provision therefor in the loan contract.
- In this connection see “Claims of American citizens against China,” telegram of December 31, 1912, p. —.↩