File No. 893.811/226a

The Secretary of State to Minister Reinsch

[Telegram]

American International Corporation has approved Shantung agreement in principle subject to exchange of letters covering details contemplated under agreement but not specifically provided for.

Corporation ready approve Kiangsu agreement if made provincial as well as Government obligation similar Shantung agreement.

Department will tomorrow through you transmit to Gatrell, representative of the American International Corporation, full instructions suggested modifications.

[Page 120]

American International Corporation also approves Siems-Carey railway construction contract in principle subject to modification details, etc., as provided for under Article 17 of agreement.

Carey returning China immediately to discuss. Carey wiring Anderson direct.

Department hopes Chinese will accept modifications suggested which will greatly facilitate sale of bonds American market.

This will give American interests valuable investment which may lead to important future developments. Use every effort cooperate with Gatrell, Anderson, assure success their negotiations.

Lansing