File No. 893.51/1246.

The American Minister to the Secretary of State.


The President today informed me that China is in immediate urgent need of funds which the sextuple group will not advance and [Page 147] that therefore he must look elsewhere. The end of the Chinese year is approaching when accounts must be settled. The troops are largely unpaid. Provincial notes issued in large amounts are at heavy discount and there is considerable fear that the President may not be able to preserve order without funds.