File No. 493.11/496.

Minister Reinsch to the Secretary of State.

[Extract.]
No. 159.]

Sir: I have the honor to report that* * * on March 13 a representative of the Banque de l’Indo-Chine is reported to have announced, at a meeting of the Five Power Group representatives, that France “will not consent to any advance of loan moneys, or to any new quintuple loan, or to any revision of the customs tariff until every centime of French losses during the revolution has been paid to the satisfaction of the French Legation.” This tying up of entirely unrelated considerations does not have anything to recommend itself except the fact that it may succeed inasmuch as under the circumstances even a policy so unjust may be forced upon China.

As the Chinese Government is as unwilling as ever to admit the justice of the indirect claims made against it, it will continue its efforts to have the matter submitted to The Hague Tribunal for arbitration. I therefore have the honor to request telegraphic instructions as to whether the American Government is disposed to support the Government of China in its efforts to submit to international arbitration the question of the justifiability of the indirect claims on account of the revolution of 1911–1912, and whether the United States Government would be willing to submit to arbitration the claims of this nature which have been listed on behalf of American citizens.

It is extremely unlikely that all the powers will agree to have this question arbitrated. The Chinese Government, however, feels that if the justice of these claims could be tested by The Hague Tribunal in the case of one or more powers, the principles thus judicially established would form a basis upon which China could protect herself against unjust claims from other sources.

I have [etc.]

Paul S. Reinsch
.