Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 4, 1917

File No. 893.811/254

The Secretary of State to Minister Reinsch

[Telegram]

Department of State,
Washington, April 10, 1917, 5 p.m.

Paraphrase of your telegram of March 31, 11 p.m,⁴ was sent to American International Corporation, which sends Department copy of agreement between the Corporation and the Industrial Bank of Japan and expresses regret that you and Chinese authorities are disturbed by erroneous interpretation of agreement. Corporation states that without specific approval of Chinese authorities it cannot make any arrangement for cooperation with others or admit other interests to participation in canal project and has from outset taken and held this position.

The Department has never recognized that Germany or Japan has special rights in Shantung but fears that opposition by Japan might prevent flotation of the required loan.

Lansing

4. Not printed.