File No. 493.11/367.

The American Minister to the Secretary of State.

[Telegram—Paraphrase—Extract.]

At a meeting of the French and Japanese Ministers with the Chinese Minister for Foreign Affairs and the Minister of Finance this morning the Minister for Foreign Affairs admitted in principle his Government’s liability for damages caused to foreigners by the revolution, and agreed that claims should be settled by the Government of China with the diplomatic representatives of the interested Powers. In case of disagreement about disputed claims they will be referred to arbitration. The Government of China is willing to borrow two million pounds sterling to pay these claims. The French and Japanese Ministers reported the above to their colleagues this afternoon.

Calhoun.