File No. 893.51/1972
The Chargé in China ( MacMurray) to the Secretary of State
In reply to my inquiry of the Foreign Office concerning another exclusive concession to Japanese interests under the agreement for a loan on the security of forests and mines in Kirin and Heilungkiang [Page 164] forwarded in my despatch 2160, July 27, Minister of Foreign Affairs quotes Ministry of Finance as follows:
Article 8 specifies and [all?] forests and mines of two provinces only as security for a temporary period. The Chinese Government has this sort of executive power, this is indisputable. Article 9 only gives priority rights in case the Government wishes to make further loans on the said security. A careful examination of the agreement and the accompanying notes shows that there is no passage to the effect that those of other nationality are not allowed to cooperate.
As the text forwarded with my despatch above cited is stated not to be accurate, I am requesting an autograph transcript for submission to you.