File No. 893.811/202.

Minister Reinsch to the Secretary of State.


Your December 28 indicates certain apprehensions on the part of American bankers which are unwarranted and which ought not to control unless American enterprise is to forego present opportunities through abnormal modesty and timidity. To carry out a loan agreement initiated two years ago could in any case redound only to the [Page 216] advantage of the United States and best interests of China. Fortunately the political situation has not yet undergone such radical changes that American capitalists need ask permission of their competitors before engaging even in new business with China. In fact these competitors still harbor the idea that Americans really desire to do business here. As to the internal political conditions nothing has occurred which affects the security of foreign investment: if anything they favor those on the ground ready to take advantage of opportunities for securing ample and secure foundation for future enterprise. It is to be hoped that some of the leading American financiers should visit China in person in order to obtain a direct judgment of conditions which it is believed contain all the elements favorable to a sound establishment of American business interests in China for a long time to come when European markets shall fail us.