File No. 893.51/1303.
The American Minister to the Secretary of State.
Peking, February 17, 1913—10 p.m.
At a meeting of the six Ministers today, all proved to be instructed, except the German Minister and myself, to support British for salt, German for loan director, French and Russian for audit advisers. French Minister said his Government desired to add currency reform to the duties of French audit adviser. British Minister asked that this request be not now pressed. French Minister withdrew from then on. German Minister, being pressed to say whether he approved four appointments, said that his Government favored Chinese schedule except that Frenchman might be substituted for Italian. Beyond that he had no instructions. I was asked to declare [Page 160] my position. I replied. I had regarded loan as a financial transaction only; that I favored Chinese appointments but because latter were not satisfactory to my colleagues I suggested alternative proposition reported in my telegram of February 4, and that I still adhered thereto; when they sought to create extra places for other nationals it gave loan a political cast which I much regretted. I was not prepared to say what the attitude of my Government will be. I said further, as they were creating positions for the possible political exigencies, I reserved right of representation therein for my Government if it wanted same. They all consented. French Minister said he had assurances from Chinese they will accept pending proposition; British and Japanese confirmed. It is evident from [this] that the powers have agreed to stand on this proposition. British have broken with Germans and joined Russians and French and brought Japanese along. German will probably come in. Shall I favor or oppose any appointments above specified?
We are confronted with a situation wherein we must join or go out of the consortium. In consenting thereto I am influenced only by the desire to save China. The political conditions are bad and threaten peace of the country. I believe the other Ministers think intervention in some form is inevitable. This loan may save the country.