File No. 893.77/1620
Minister Reinsch to the Secretary of State
Peking , August 31, 1917, midnight .
As a result of conversations with Ministry of Communications as well as the British and French representatives, I have the honor to ask your consideration of following:
The completion of the Canton-Hankow Railway is the prime requisite for the maintenance of Chinese national unity, as it will establish quick communication between centers of Canton, Hankow, Peking. Usefulness of China in this war would be greatly enhanced through this railway, which would moreover make readily available supplies from several rich provinces. This railway could be completed in one year if entrusted to competent construction companies.
Totally aside from enormous importance of this enterprise for all time, the effect in mobilizing Chinese national strength and resources for use as reserve in this war would be such as to warrant the American Government for war purposes lending the necessary funds to the Chinese Government directly. Existing contracts need not be disturbed by this arrangement. This possibility has not been mentioned to the Chinese who, however, hope that the American Government will do its utmost to make this indispensable work possible.
From the point of view of America no other act would signally contribute to the national and war efficiency of China and forever redeem American reputation originally compromised in connection with Canton Railway.
If you wish to consider it I shall lay before you a more specific proposal.