File No. 861.77/472
The Ambassador in Japan (Morris) to the Secretary of State
[Received September 12, 5.41 p.m.]
I inquired informally of the Minister for Foreign Affairs as to the truth of the report mentioned in your September 7, 2 p.m. He [Page 247]denied absolutely that such a loan had been made by or with the knowledge of the Japanese Government, and was confident that no Japanese financial interests had taken such action. He advised me in confidence that some time ago Horvat1 officially requested the Japanese Government to make a loan to the Chinese Eastern Railway of ten million dollars but had been definitely refused. …
In conclusion he referred again to the railway situation in Siberia stating that he had thought much of our conversation last Monday as reported in my September 11, 1 a.m.,2 and was now personally convinced that our Governments should cooperate in some plan to place the operation under control of the Stevens commission. He further explained that as a first step he was endeavoring to deprive the Allied military conference at Vladivostok of jurisdiction over the question. If he could accomplish this, our two Governments would then be free to agree upon some mutual plan.