Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 4, 1917

File No. 893.51/1807

The Secretary of State to Minister Reinsch

[Telegram]

Department of State,
Washington, September 20, 1917, 7 p.m.

Your September 7, 5 p.m. and September 16, midnight. The loan to China now under consideration by the American Government is intended as a substitute for the Consortium loan now under consideration in Peking. It is felt that of the Powers in the Consortium Group all are very heavy borrowers from the United States, except Japan, and not in a condition to furnish China money. If the Consortium loan should be made, Japan would be the lender and would have the backing of the Allied Group. This is undesirable.

Lansing