File No. 893.77/1536

The Acting Secretary of State to the American Group

Gentlemen: Referring to your letter of March 31, 1916, relative to the preliminary agreement signed in October, 1909, between the Viceroy of Manchuria and the Governor of Fengtien on behalf of the Manchurian Administration and the American Group for the construction of a railway from Chinchow to Aigun through Tsitsihar14 and the possible infringement of the rights of the American Group by a contract recently reported as having been negotiated by China with the Russo-Asiatic Bank, I have to enclose herewith for your information copy of despatch No. 1037 of April 20, 1916, from the American Legation at Peking, with a copy of this last-mentioned loan contract.

In this connection I have to say that the Department was informed on May 5 by the Legation at Peking that the loan agreement above mentioned contemplates the possibility of raising money in the United States for the construction of the road and that Mr. Hugo Bryce, a representative of the Russo-Asiatic Bank, who was then on his way to America, would stop at Petrograd to discuss the matter with the proper authorities there. It is also understood by [Page 182] the Department that Mr. Gregory, while en route from China to the United States, stopped at Petrograd for the same purpose. The Department would be glad to be informed whether a satisfactory understanding has been reached at Petrograd with reference to the participation of American bankers in furnishing the necessary funds under this contract and whether the American Group desires that any protest be made in its behalf to the Chinese Government.

I am [etc.]

For the Acting Secretary of State:
Alvey A. Adee