File No. 893.811/237
[Untitled]
Washington, January 8, 1917, 5 p.m.
Your telegrams of December 29, 10 a.m. and January 2, 8 p.m. Straight states Corporation not committed to cooperation with Japan [Page 208] in canal project but declares impossible to finance scheme while Japan protests. Straight holds that China must first dispose of protest.
Department called attention to exceptional character of canal project in origin and relations making desirable that it remain solely American, but admitted that in other enterprises if desired or willingly allowed by China cooperation between Americans and Japanese in China might be of advantage to China.
Straight did not ask Department to make representations to China in regard to Japanese cooperation but the impossibility of Department’s doing so was pointed out to him. In view of dilemma mentioned by you this Government should not be committed for or against cooperation in canal improvement. If cooperation in some other enterprise could be substituted the Department would be glad.