893.51/2284: Telegram
The Minister in China (Reinsch) to the Acting Secretary of State
[Received 3.10 p.m.]
Chinese Chargé d’Affaires has telegraphed outline of new [international] consortium proposal contained in a note from the Department. [Page 459] In publishing this telegram the Japanese controlled press bitterly attacks the consortium. Individual Japanese here inform Chinese officials Japan will not consent. Effort is evidently to induce certain factions in China to oppose the consortium as the pro-Japanese clique is already doing. Local Japanese paper calls the plan tantamount to the partition of China’s remaining rights and a recognition of the various spheres of influence also a monopoly destructive of China.
I have been informed of a project to induce the Chinese to make a proposal for a loan to the old consortium in which case the Japanese would continue the lead they have taken there and would be in a position to propose terms to the new consortium. This would sufficiently complicate the game for their purpose. The earliest possible formal notification of the formalities of new consortium is essential.
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