893.51/2423: Telegram

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

Your August 27, 4 p.m.

Minister of Finance is very timid, evidently fearing that the adoption of the consortium in the manner suggested without definite assurances would cause the Government great difficulty. In my latest interview he stated belief that if the United States should complete the Chicago loan the other developments would follow naturally because American leadership thus manifested with complete propriety could not be successfully opposed and would [make] consortium introduction easy. But without such preparatory [Page 486] action, sudden initiative in proposing limited consortium would encounter serious opposition. I suggested that United States could act more effectively in cooperation with other powers. He was sympathetic, but reverted to the opportunity of preparing favorable situation through Chicago loan. Time was too short for me to bring about action although the President, General Tuan, and the Minister of War were evidently impatient with the Minister of Finance and it was even hinted to me that he might be removed to assure action. I could not, of course, encourage this in view of your telegram, however strongly were I willing to support. In order to eliminate possibility of embarrassment to you, I undertook the whole démarche as by my personal initiative.

[Finally the] Minister of Finance assured me that as soon as he had received negative reply he would instruct Legation at Washington to approach you with a view to [discussing] the best method of financing. This was as far as I could go in the time available. As I leave now, new instructions to Tenney60 would be required to pursue matter here but I believe that your policy has been materially advanced. All influential men and parties are desirous of American lead, the opposition is greatly weakened. The matter is in your hands.

Reinsch
  1. Charles D. Tenney, Counselor of Legation.