File No. 893.811/236
Minister Reinsch to the Secretary of State
Peking, January 2, 1917, 8 p.m.
My telegram of December 29, 10 p.m. [a.m.]4 The American International Corporation telegraphs Carey [and] Gregory in substance:
The Japanese Government favors cooperation canal. May intimate to Chinese protest will be withdrawn if cooperation arranged. Cooperation would remove public apprehension regarding Japanese opposition American finance held. We propose arrange understanding under which Japanese and yourselves would jointly negotiate with Chinese. Delicate handling necessary.
The Japanese démarche regarding canal has been treated heretofore as an inquiry and so explain to American representative by a member of Japanese Legation, see my despatch No. 1267.44
It would have been impossible to find a more unsuitable enterprise for cooperation. Should the Chinese learn that it is proposed to carry the Japanese into Kiangsu on the back of Americans their indignation will be without limit, resulting in great damage to American interests in general and in universal antagonism to the International Corporation.
- Not printed.↩
- For. Rel. 1916, p. 127.↩