File No. 893.811/242
[Untitled]
Peking, January 22, 1917, 7 p.m.
In reply to informal suggestion reported to the Department in my telegram of January 12, 6 p.m., I have now received from Japanese Minister what he designates a confidential reply of personal character stating that he favors the general principle of cooperation between Japanese and American capitalists but adding that
As regards the practical side of the question in applying the said principle of cooperation to railway enterprises in South Manchuria and Eastern Inner Mongolia it is more desirable that I shall be allowed to reply at a later date upon further consideration on account of the special position enjoyed by us in the said regions.
In this connection he stated that “The Japanese Government secured from China in May 1915, a general preferential right concerning railway investments,” in the regions specified.
He further asks information as to recent American railway contract with particular reference to the possibility of Japanese cooperation therein.