File No. 893.811/175.

The Central Committee of the American Red Cross to the Secretary of State.

Sir: Referring to your letter to the undersigned of December 23 in which the Department acknowledged receipt of my letter of December 19, 1914, respecting an advance of five million dollars ($5,000,000) on the Huai River loan; and to the information conveyed by the Department that pursuant to the suggestion of the Central Committee of the Red Cross a telegram was being sent to the Minister at Peking on December 22, 1914, expressive of the views of the Red Cross on the subject of the Huai River conservancy, a paraphrase of which telegram was communicated to the Reel Cross by the same letter from the Department of December 23; and referring also to a further request of the Red Cross that the dispatch transmitted for delivery to the Chinese Government be held by the Minister at Peking I would now say that after the consideration of the matter in the light of results of the further inquiry on which a hope was based of obtaining a loan for China, that this hope has not as yet been realized, and I have to ask that the dispatch, of which a paraphrase was submitted on December 23, be now delivered by the Minister at Peking to the Chinese Government, so that it will read as follows:

Red Cross engineers report Huai River Conservancy project entirely practical but that war conditions make the negotiation of a loan or contract to obtain an advance of funds at this time almost impossible. Inquiry is made as to whether China desires Red Cross to continue its efforts towards working out a solution of the project. If so, Red Cross will be glad to continue to exert its efforts. Meanwhile formal extension of exclusive option to Red Cross desirable. If China concedes extension Red Cross desires American Minister to make necessary arrangements. Two hundred copies of board’s final report delivered to Chinese Minister in Washington this day.

I will be glad if this dispatch can be transmitted to the American Minister at Peking.

Your very sincerely,

Geo. W. Davis,