File No. 893.51/1539.
Chargé MacMurray to the Secretary of State.
Peking, August 8, 1914.
The Foreign Office tonight circularizes Legations that because of the failure of contemplated loans and the stoppage of banking operations, debts of the Chinese Government due to banks, foreign firms, companies and shipyards, whether calling for payment at fixed times or by arrangement, can not be met until conditions are somewhat settled and banking operations have recommenced, after which measures will be taken to meet all obligations in good faith.
From a reliable source I learn that the Japanese, British and Russian Legations were previously advised and gave informal assurances that they would not insist on payment for the present.
Existing conditions, in fact, leave to the Chinese Government no alternative and, with a view to minimizing the importance of its default as a pretext for aggressions, I venture to suggest that the Legation be authorized to state that the American Government recognizes the necessity and accepts it, subject only to the reservation of American rights involved.