893.51/2122
The Department of State to the Japanese Embassy
Aide-Mémoire
The Secretary of State advises that he is unable to recall the conversations to which the Japanese Ambassador refers as having taken place on May 6 and May 11, 1918. He, therefore, cannot confirm the Ambassador’s memorandum but is not disposed to question its accuracy.
Without reference to the above, in the light of the decision on the part of this Government in June, 1918, to approach Japan and other Powers with a proposal to form a new consortium for the purpose of making loans to China, the Secretary of State feels that the situation has undergone a change. The views of the Governments of Japan, France and Great Britain with reference to such a proposal have been requested and received. The American bankers have been consulted and are ready to participate in such an enterprise. Since any monetary reforms in China will depend upon an international loan it would seem wholly proper that the terms of such loan and general principles affecting currency reform be agreed upon by all the lending groups before a financial adviser be appointed. The Secretary of State is of the opinion that any appointment should be postponed until the financial groups have had an opportunity to consider fully the questions involved. Whether the adviser be a Japanese or a citizen of some other nation this would seem not only fair but a practical necessity.