File No. 893.51/2068
The Minister in China (
Reinsch) to
the Secretary of State
No. 2287
Peking,
October 23, 1918.
Sir: I have the honor to enclose for your
information copies of the regulations concerning currency reform
promulgated on August 10, 1918;1 and of a memorandum of an interview between
the Minister of Finance and the British, French, Russian and
Japanese group representatives on October 21, 1918.2
Most decided exception is being taken by the above representatives
and their Ministers to the attempt to anticipate a part of the
currency reform, through the gold-note scheme, without previous
consultation and agreement with the groups which hold the currency
loan option. Moreover, the gold-note scheme is considered in itself
absolutely unsound, designed only for private profit, and of such a
nature as to add still further to the currency confusion in
China.
The failure of the Minister of Finance to give notice to the American
Government of the proposal embodied in the gold-note scheme, is made
the subject of a note from the Chargé to the Minister for Foreign
Affairs, dated October 8, 1918, and of a reinforcing remonstrance by
myself, dated October 22 [23], 1918, copies of which are herewith
enclosed.
I have [etc.]
[Enclosure 1]
The Chargé in China (
MacMurray) to the Chinese Minister for Foreign
Affairs (
Lu Cheng-hsiang)
No. 857
Peking,
October 8,
1918.
Excellency: I have the honor to recall
to your excellency’s attention the fact that on October 20,
1917, the Legation had occasion to communicate to the Ministry
for Foreign Affairs, under instructions from the Government of
the United States, the following statement of views:
Quite apart from any individual contractual interest
accruing to the American group under the currency loan
agreement of April 15, 1911, the Government of the
United States considers that the whole history of the
[Page 160]
currency
loan project—notably the appeal made to it by the
Chinese Government in January 1904, the conference with
Dr. Jenks in 1903 and 1904, and the request for a loan
for the purpose of monetary reform which in 1910 the
Chinese Government addressed not to any individuals but
directly to the American Government—constitutes in
behalf of the Government of the United States such an
interest in the project as entitles it to be considered
in reference to any action which the Chinese Government
may contemplate with a view to carrying such project
into effect. This interest has never been abandoned by
the Government of the United States.
Under instructions of the American Government I have the honor to
reiterate the foregoing reservation of a right, in behalf of
that Government, to be consulted in regard to any project of
currency reform which the Chinese Government may propose to
adopt.
I avail [etc.]
[Enclosure 2]
The Minister in China (
Reinsch) to the Chinese Minister for Foreign Affairs (
Lu Cheng-hsiang)
No. 871
Peking,
October 23,
1918.
Excellency: In a note to your
excellency dated October 20, 1917, I brought to your attention
the continuing interest of the American Government in the matter
of currency reform and loans for that purpose. On October 8,
1918, the American Chargé d’Affaires again called your
excellency’s attention to this matter. The substance of these
representations is that the American Government, having
originally interested itself in currency reform and having
initiated the entire currency loan project, is entitled to
expect from the Chinese Government, as a friendly power, to be
consulted with respect to further developments of this
enterprise. Notwithstanding these statements made under
instructions from the American Government, the Minister of
Finance has attempted to take important action in connection
with currency reform without giving the American Government an
opportunity to consider such proposal.
I therefore have the honor to request that the attention of the
Minister of Finance be called in the strongest terms to the
subsisting relationship between the Government of China and the
Government of the United States in the matter of currency
reform. In order to prove its continuing friendship for the
American Government it will be desirable for the Chinese
Government to instruct the Minister of Finance not to ignore the
American Government in this matter which the said Government has
had a continuing interest in, and to take no action whatsoever
which will interfere with the carrying out of the complete
currency reform plan under the loan agreement to which other
friendly powers are the parties and in which the United States
Government has a continuing interest. I am constrained to state
that a failure on the part of the Minister of Finance to observe
the demands of this relationship between the Chinese and the
American Government can not fail but have detrimental results,
which I feel assured your excellency’s Government in its
traditional and sincere friendship for my country will desire to
avoid.
I therefore urgently request that information to this effect be
given the Minister of Finance without delay.
I avail [etc.]
