File No. 861.77/474

The Ambassador in Japan (Morris) to the Secretary of State


Baron Goto has just advised me that only to-day he received a report from Matsudaira3 which explains the loan to Horvat referred to in your telegram September 7, 2 p.m., and which greatly modifies the statement which in good faith he made to me yesterday, as reported in my September 11, 11 p.m. It appears that Horvat requested payment in advance of the amount which would be due by the Allied forces for transportation charges. This request was refused by the Allied military council but was subsequently reconsidered and the council then agreed that in lieu of the prices requested, the Japanese military forces should advance to the Chinese Eastern Railway Co. 1,000,000 yen which roughly represented the amount which would be due for transportation and freight charges for movement of troops. This decision was promptly carried out by the General Staff and the Foreign Office had no knowledge of it until this morning.

I am unable to get any information as to the membership, functions or jurisdiction of the Allied military council so constantly referred to.

  1. Tsuneo Matsudaira, Japanese representative in Siberia.