File No. 893.51/1360.
The Secretary of State to the American Group.
Washington, March 28, 1913.
Sir: Replying to your favor of March 19th, the President directs me to say that, in view of the fact that China was expecting to secure [Page 176] from the six-power loan the money with which to take up her short-time obligations, he thinks it would be unfair to demand of China the immediate payment of the advances made, and suggests the propriety of considering favorably the request made by China for a six months extension.
For this Government to urge immediate payment or to act officially in calling attention to the demands of the American financiers would arouse just criticism in view of the fact that it was this Government’s refusal to renew the request made by the preceding administration that terminated the prospect of your participation in the loan and thus gave the excuse for the immediate demand. This Government’s obligation to urge fairness upon the part of American creditors is as binding as its obligation to ask fair treatment of Americans by foreign governments, and the President feels that in view of all the circumstances of the case the request of China for six months time is not unreasonable. The security, it may be added, is not lessened by delay and the interest is two per cent higher than that which you asked for the long-time loans.
Before taking action upon your request, the President would be glad to have a reply to this suggestion.
Very truly yours,