File No. 893.51/1893
The Minister in China ( Reinsch) to the Secretary of State
My telegram of April 13, 5 p.m., my despatch number 1886. Baron Sakatani, whose appointment as financial adviser is being urged by the Japanese Minister, demands control over foreign loans and over bank-note issues. The Chinese Government is not willing to give such extensive powers. Sakatani has left on a tour, meanwhile Japanese Legation urges his appointment. Even Liang Ch’i-ch’ao invited Sakatani to come, now counsels caution.
[Page 147]In view of Sakatani’s press statements I asked Japanese Minister yesterday whether Sakatani was candidate for the position of currency adviser. Japanese Minister stated that he was, and when I suggested that the other powers interested in the currency loan were entitled to a voice in the matter, he stated that the Chinese Government had offered the position of currency adviser to Sakatani. I remarked that it was surprising that such action should be taken by the Chinese Government without previous consultation with the powers interested. Japanese Minister then said that his Government had already suggested to the British and French the appointment of Sakatani. …
The French banking representative stated to me that his Government might consent to the appointment of Sakatani but that the extensive powers asked for him constitute a new phase. He expressed the hope that the American Government might immediately appoint its representative as a proposal for the loan is expected presently and the first meeting after such proposal will be of great importance. …