893.51/2531a: Telegram
The Secretary of State to the Ambassador in Japan (Morris)
Japanese press reports seem to indicate a financial situation in Japan which might militate against the successful flotation by the Japanese group of such amounts of Chinese securities as would represent half of the proposed loans to China contemplated by the new consortium. The Department desires that you carefully investigate the situation and report by telegraph your opinion as to the probable success of the Japanese group in the event of its being required to assume the responsibility of underwriting half of British and French advances to China in addition to its own share.
The Department also desires your opinion as to whether or not an anticipation of difficulty in floating its share of the loan constitutes a motive for Japan’s opposition to the consortium plans as agreed upon by the other interested Powers, the idea possibly being to prevent the formation of the consortium by advancing unacceptable objections and reservations in the hope of avoiding a disclosure of the present financial condition.