File No. 893.811/119.
The Chief of the Division of Far Eastern Affairs, Department of State, to the Counselor.
Washington, April 1, 1914.
Counselor:40 The attached copy of a letter, dated January 26, 1914, to the President, written by Mr. Moore as Chairman of the International Relief Board of the American Red Cross, furnishes a comprehensive review of the Huai River Project from its inception to the submission of a definite proposal in the matter by the Chinese Government.
On January 30 last, the Chinese Minister for Foreign Affairs signed a memorandum giving the Red Cross one year in which to designate a contractor to finance and execute the conservancy work. The Red Cross promptly designated J. G. White and Company as the contracting firm to negotiate a contract with the Chinese Government. Some delay has been occasioned by the detention in Europe of Dr. Chen Chin-tao, Financial Agent of the Chinese Government abroad, who was authorized by the Chinese Government to negotiate with the contractors. As the contractors desired to have their own engineer’s in China at the beginning of the high water season in June, the Red Cross urged the Chinese Government to hasten the coming of Dr. Chen or to designate some other representative to carry on negotiations. The Chinese Government then instructed Mr. Shah, the newly appointed Chinese Minister to the United States, to proceed immediately to this country to conduct the negotiations. Mr. Shah will arrive at New York on April 4. Meantime Mr. Yung Kwai, Chargé d’Affaires of China here, has been authorized to enter upon preliminary negotiations with the contractors.
It has now developed that the bankers upon whom the contractors rely for funds require definite assurance as to the value of the land to be reclaimed and benefited by the conservancy scheme, the security offered for the loan being, in addition to the guaranty of the Chinese Government, the taxes on the improved land and proceeds from the sale of reclaimed land. This necessitates the sending of engineers to the conservancy region to make a resurvey for the purpose of determining the reliability and practicability of Mr. Jameson’s report and recommendations. The contractors have expressed a willingness to accept Chinese Treasury bills to defray the expense of this survey, the amount thus advanced to be included in the large loan when consummated. The decision of the Chinese Government on this point is now awaited.
Since the Chinese Government has expressed a desire to have an American Army Engineer in charge of the work, the Red Cross intends to ask Congress to pass a bill authorizing the necessary detail.
- Mr. Moore retired as Counselor on March 4.↩