893.51/2407: Telegram

The Minister in China (Reinsch) to the Secretary of State53

President Hsu sends the Legation following message:

“Unless financial assistance [forthcoming] from America or the consortium within a month the Chinese Government will be compelled [Page 484] to make what arrangements it can with Japan in order to escape the consequences of the present financial stringency.”

I am informed that neither officers nor men of the Army and Navy have been paid for three months. Liu, the Minister of the Navy, has been making short term loans at disastrous rates from different banks, but has been refused further accommodation and so has tendered his resignation to the President two days ago. The resignation has not been accepted, but Liu is absenting himself from Cabinet meetings.

  1. Communicated to the Ambassador in Great Britain by telegram No. 5935, Sept. 8, 5 p.m., with instructions to repeat to Paris for Marshall and the American Commission.