File No. 814.51/213.
The American Chargé d’Affaires at London to the Secretary of State.
London , January 16, 1913 .
Acknowledges receipt of Department’s instruction No. 1828 and reports that he explained the situation in detail to Sir Edward Grey in conformity therewith, emphasizing the deep interest of the United States in the success of the loan and the importance of immediate action. In handing a copy of the loan contract to Sir Edward he requested him to examine it and to judge for himself as to the protection afforded the British bondholders and to give his assent to the agreement.
Sir Edward stated in the course of the conversation that the chief concern of the British Government in this matter was its unwillingness to abandon a position of comparative security for one of uncertainty in the chances of success of the loan agreement; to which the Chargé replied that the Department was convinced that the agreement would be successful with his support if prompt action were taken, and in case of failure he felt sure the Department would support the British contention for the restitution of the coffee revenues. An early reply was promised.