File No. 893.51/1817
The British Embassy to the Secretary of State
The British Embassy present their compliments to the Department of State and, with reference to the former’s memorandum of October 3, have the honour to state that a further telegram has been received from Mr. Secretary Balfour from which it appears that his Majesty’s Government have now been approached officially by the Japanese Ambassador at London on the subject of the proposed Currency Reform [Page 146] Loan to China. His excellency stated that no departure from the principle accepted by the Governments and banks concerned of incorporating the Currency Reform Loan in the second Reorganisation Loan is constituted by the present project, which may be regarded as a partial modification supplementary to the Reorganisation Loan proposed last year. The Japanese Government asked His Majesty’s Government to issue the necessary instructions to the British Group with a view to the progress of the negotiations being facilitated by them in cooperation with the other groups concerned.
His Majesty’s Government are, therefore, anxious to know whether any decision has been come to by the Government of the United States in regard to the suggested participation of an American Group.
Mr. Secretary Balfour proposes to inform the Japanese Ambassador that the British Group will be communicated with in the sense desired by the Japanese Government.
Washington , October 8, 1917.