File No. 893.00/2582

Chargé Wheeler to the Secretary of State


In connection with retirement of Tuan a number of vernacular newspapers here including the Hochi editorially allege the American Legation at Peking has been carrying on secret communications with the Chinese Cabinet. The Nichi Nichi publishes rumor that the American Minister furnished the President with 250,000 yuan [Chinese dollars] for use in connection with the opposition against the former Premier. The Chief of the Political Bureau of the Foreign Office here has expressed to newspaper men his belief that the United States was behind the change stating that Japan regretted that attitude. Yesterday morning 5 newspapers published identical telegram from Peking to the editors that the Cabinet is trying through the American Legation to negotiate a loan of 25,000,000 yuan with the representatives of the Morgan Syndicate.