File No. 893.51/1977
The Ambassador in Japan ( Morris) to the Secretary of State
[Telegram]
Tokyo,
August 26, 1918, 8 p.m.
Your August 21, 3 p.m.2 I have received to-day the following memorandum from the Foreign Office:
The Japanese Government have carefully considered the plan presented and are gratified that the United States Government approves the participation of American financial concerns in the consortium.
In order to form their own views definitely the Japanese Government desire the following further information concerning the intentions of the American Government:
- 1.
- Is it intended that the American group to be formed shall rejoin the existing four-power consortium or that the consortium shall be dissolved and replaced by a new organization? In the latter alternative what adjustment is it proposed to make respecting the rights and claims which are actually held by the present consortium in its reservation [relations?] with China, and by members of the consortium in these mutual relations, and what treatment is with fairness to be reserved for the Russian group left out of the new organization, in case that group takes exception to the proposed dissolution of the existing consortium?
- 2.
- What are the motives underlying the suggestion following “a relinquishment by the members of the group either to China or to the group of any options to make loans which they now hold”? Is any distinction to be made in the nature of the options to be so relinquished? For instance, the Yokohama Specie Bank representing the Japanese group holds options for certain railway loans in Manchuria and for loans to be made to Hanyehping establishment. Is it suggested that all such options shall equally be renounced?
- 3.
- Is it proposed that the field of joint activities for the new consortium shall cover industrial loans as well as loans for administrative purposes? In the affirmative case, it is expected that all loans to China shall practically be monopolized by the four-power group and that each Government shall undertake not only to deny support but also to put end to any financial operations in China which may be planned by independent commercial concerns [not?] taking part in the group?
- 4.
- Reservation is made by the American Government to oppose to “any terms or conditions of a loan which sought to impair the political control of China or lessen the sovereign rights of that Republic.” Is it to be understood that this reservation is not intended to call in question propriety of any specific arrangement now in operation between the four-power consortium and the Chinese Government?
Morris
- Not printed.↩