893.77/1706b: Telegram

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

The French Charge d’Affaires called December 24th and asked this Government to instruct our minister to urge the Chinese Government to eliminate the German interests in the Hukuang railroads.79

He was told that we feared that such independent action along the line of the new Consortium’s proposed activity would delay, if it might not jeopardize, the completion of the Consortium Group; that the formation of the new Consortium Group would definitely and [Page 568] conclusively eliminate German influence in China; that we hoped that his Government would adopt the Consortium as a means to the end he had just proposed and would urge the British and Japanese Governments to do the same.

He argued at considerable length, and was told finally that we would:

Instruct our minister to support the proposed elimination of German interests in the Hukuang railways in connection with similar proposals from the British, French, and Japanese representatives; provided
That these four governments join under the conditions mentioned in the Consortium proposal to make a loan to China for the completion of the railway.