File No. 893.77/1619
[Untitled]
Peking , August 9, 1917, 10 a.m .
My telegram of July 14, 6 p.m. The British protest has been filed. Even should the promise in question, given by a provincial official apparently without the ratification of the Chinese Government, be considered valid, it would give the British only the right to be asked whether they desire to finance the project. As they are unable at present to finance any of the highly important lines already granted to them it would seem highly illiberal to prevent the construction of still other much needed railways. The promise given the British in any event does not invalidate the American contract, but at most affords ground for complaint against China. Please inform whether the British Government can be induced to change its illiberal attitude. The matter is one of vital importance to the continuance of American opportunities in China.
[Page 191]Should the British Government insist upon the enterprise be [being?] offered to it there would be a delay of several months. Will the American Government back the Chinese Government in placing a short limit, say three months, on an offer to a nation that claims territorial preference of [for?] an enterprise which Americans are ready to undertake?
The vital interests of China including the maintenance of national unity and the ability to be of use in this war demand immediate completion of Hankow-Canton Railway. It would be of great benefit if Americans could advance the capital necessary. This would not disturb existing international arrangement.