File No. 893.811/127.

Minister Reinsch to the Secretary of State.

[Telegram.]

Your telegram of May 9. Chang Chien has wired that as preliminary surveys had been carefully made by his engineers, supplementary survey ought not to cost more than $25,000. However, Cabinet has decided to assume responsibility for repayment of cost up to $50,000 gold. Government believes that judgment as to whether the work is practicable could be formed after expenditure of that amount; further supplementary surveys regarding details could then be paid out of proceeds of the loans when raised.

Your May 13. As Chang Chien is still absent in the south, such negotiations would be difficult and lengthy. Do you desire to have me suggest that he return for conference or will negotiations be continued in the United States?

Reinsch
.