File No. 893.811/260
Minister Reinsch to the Secretary of State
Peking, April 19, 1917.
Sir: In connection with my despatch No. 1455 of April 14, dealing with the Grand Canal contract, I have the honor to add, in order [Page 216] to avoid misunderstanding, that when my opinion was asked by Chinese officials concerning the advisability of accepting the suggestion of the American International Corporation with respect to giving to Japanese capitalists a share in the financing of the canal enterprise, I have replied in a sense favorable to the suggestion. * * * Unfortunately the further proposal now revealed that there is to be participation not only in the financing, but also in construction and management, will make our position far more difficult.
I have [etc.]