File No. 763.72/7728
The Minister in China ( Reinsch ) to the Secretary of State
[Received November 15, 4.25 p.m.]
Both the Chinese Government and the French Legation eagerly awaiting the decision of the American Government on the question submitted in my telegram of November 4, 8 p.m. As to the safest method of securing this important military support I have the honor to make the following suggestion. In view of the fact that in the case of a loan the Chinese Government naturally would desire to control the expenditure, direct assumption by the United States in behalf of the Allies of all the expense of the expedition would prove more satisfactory. Under this arrangement China would contribute the men, the United States would pay to the Chinese Government a lump sum to defray the cost of getting the troops to the port of embarkation in China and would thereafter directly provide in conjunction with the Allies for transport, arming, provisioning and payment of the troops. This arrangement would avoid all entanglements and possible criticism connected with a loan for this purpose and would offer to the Chinese a clean opportunity to do their part.
If concurrently financial assistance to be given by way of a loan for national efficiency purposes a definite understanding as to the application of the funds is most important.