File No. 803.51/1369A.
The Secretary of State to the Ambassador of Great Britain.1
Washington, April 1, 1913.
Excellency: I have the honor to appraise your excellency of the present attitude of the Government of the United States in the matter of the pending negotiations for effecting a foreign loan to the Government of China.
It is unnecessary to recite the circumstances under which those negotiations were set on foot, or the course they have taken. As you are aware, the financial groups of four powers, including the United States, acting with the acquiescence of their respective Governments, took up the matter with the Government of China. Subsequently the financial interests of two other powers took part in the negotiations. The matter was still pending and undecided when the present Administration of the United States took office on the 4th ultimo.
On the 10th ultimo the American financial group, which had theretofore taken part in the negotiations at the request of the late Administration, asked whether the request for the cooperation of the American bankers would be renewed, and intimated that they would not be justified in continuing the negotiations unless they were requested anew to do so.
In response to that inquiry, the matter was considered by the President, whose decision was communicated to the American group and made public for the information of the people of this country. A copy of that publication is hereto appended.2
[Page 178]The American group replied, announcing their withdrawal from participation in the negotiations at Peking, in the following language:
We beg to enclose herewith a copy of the telegram which we have today despatched to the groups with whom we have been associated, and to our representative in Peking for communication to the Chinese Government, announcing our intention to withdraw from the six-group agreement and to give notification of our withdrawal from the four-group agreement in June next, in accordance with the provisions of article 14 thereof.
The telegram referred to, after quoting the public statement, continued as follows:
In view of the foregoing the American group is with great regret obliged to announce to the other groups its complete withdrawal from negotiations for the reorganization loan. We sincerely trust that our action will in no wise prejudice the position of the other groups. We shall gladly consider any suggestions other groups may be pleased to make as to action they desire us take in order that our withdrawal may cause them least possible embarrassment. We shall delegate International Banking Corporation to carry on such routine business as may be necessary in view of the commitments already undertaken. We trust that you will appreciate the circumstances which have made our action imperative, and that you will realize our regret at severing our associations with the combination which we like yourselves believe to have been in the best interests of China and of the investing public in our respective markets.
In communicating with British, French and German groups please add following:
The International Banking Corporation will act for us as regards the Hukuang agreement and the currency loan. We presume in view of amended reorganization-loan agreement, currency loan will be merged therewith, but if other groups wish proceed independently we shall gladly do everything in our power be of assistance. We would further notify you that as at present advised we shall in June give notification of our intention withdrawing also from four-group agreement in accordance with article fourteen thereof.
The matter having thus been determined, it becomes appropriate to acquaint you with the facts in the case, for the information of your Government, in view of the interest it has testified in the negotiations conducted with the Government of China by the financial groups of the six powers.
Accept [etc.]