893.51/2275: Telegram
The Ambassador in France (Wallace) to the Acting Secretary of State
[Received June 22, 9.58 a.m.]
891. I conferred yesterday afternoon with Secretary Lansing in regard to the messages transmitted through London Embassy by Mr. Lamont to American group on June 17th21 and 18th, Messrs. Lamont and Marshall being present.
[Page 454]It was agreed that the attitude of Japan as outlined in Odagiri’s communication to Lamont on 18th is serious as involving possible break down of new consortium and that therefore every proper measure should promptly be taken to indicate clearly to Japan bearing of her attitude toward whole matter. Lamont will discuss with French group as he has with the British this Japanese situation. It was agreed by us yesterday that the Department of State should jointly with the British and French Governments communicate to the Japanese Government its opinion of the situation somewhat in the following sense:
The Department has been made cognizant of a letter addressed by Odagiri to Lamont of the American group outlining new views on the part of the Japanese Government as to the handling of new Chinese consortium. In the course of the letter, Odagiri stated as follows:
“For your information I would wish to communicate to you that we have been instructed by our principals in Japan that all the rights and options held by Japan in the regions of Manchuria and Mongolia where Japan has special interests should be excluded from the arrangements for pooling provided for in the proposed agreement. This is based on the very special relations which Japan enjoys geographically and historically with the regions referred to and which have been recognized by Great Britain, the United States, France and Russia on many occasions. In this connection I would wish to specially draw your attention to a note from the Secretary of State to the Japanese Ambassador dated Washington, November 2, 1917.”21
Mr. Odagiri requested that the American group give to his letter “careful consideration”.
The Department of State is informed that the financial groups involved will address to Mr. Odagiri of the Japanese group their general views to the effect that any such attitude as that outlined by Japan if persisted in will go far towards breaking down the whole intent and work of the consortium. Furthermore, however, the matter is of such importance that the Department deems it its duty in the premises to point out that any act on the part of Japan tending to exclude Manchuria and Mongolia from the scope of the consortium would be entirely contrary to both the spirit and letter of the original proposal made in the Department’s note of July 10th last22 in reference to the proposed new consortium the principles of which note were cordially accepted by the Japanese Government. The Department must point out that the international plan for the assistance and development of China must be made an effective working partnership or it will be of no value whatsoever. Manchuria and Mongolia are important sections of China and assuredly any loans that are issued with the guarantee or under the special sanction of the Government of those two provinces must naturally and properly fall within the scope of the consortium. Such a construction would of course in no way tend to diminish or contract the private activities of Japanese nationals in the regions referred to. The Department fully recognizes the interest already taken in the development [Page 455] of the regions in question by Japanese nationals and has no desire to suggest that such activities be curtailed. But when it comes to a question of such important projects in Manchuria and Mongolia as may bear the sanction or guarantee of the provincial Governments involved, then the Department must point out very clearly that such projects must necessarily come within the scope of the consortium. In the note of the Secretary of State to the Japanese Ambassador dated November 2, 1917, the special relations alluded to had of course, no reference to the economic question involved in the regions of Mongolia and Manchuria. To sum up, the Department deems the future of the proposed new consortium as of such interest to the development and stability of China and to the peace of the world that in the event that Japan sees fit to adopt finally the principle of attempting to exclude from the consortium the indubitably Chinese regions referred to, then the Department will be inclined to advise the three other financial groups, namely, those of the United States of America, Great Britain, and France, to proceed promptly to the completion of the consortium upon the basis of the three powers just named with the inclusion in the near future of Belgium and Russia. The Department would deplore the necessity of giving any such advice which would be tantamount to proceeding with the plan in question with [without] the co-operation of Japan.
It is suggested further that the Department confer immediately with the American group ascertaining beyond question whether the above proposal meets with the approval of the American group. The point is an important one by reason of the fact that in the possible event that Japan persists in her attitude, America might be left temporarily the chief financial support of the consortium because of the inability for the moment of Great Britain and France to contribute materially to any new financing. Therefore, the American group should consider the attitude of the Department in the light of this point. Furthermore, you will of course understand that whatever decision may be arrived at in Washington after a conference with the American group, it is, as already stated, proposed here that any note along the foregoing line should be presented not as the action of the Department alone but as a joint note presented coincidently by the American, British and French Governments.
- Telegram of June 17 not printed.↩
- Foreign Relations, 1917, p. 264.↩
- Ibid., 1918, p. 175; also enclosures therein referred to, printed on pages 172 and 174.↩