861.77/1230: Telegram

The President of the Technical Board (Stevens) to the Secretary of State

Chinese Eastern arranging with Japanese banks for loan of yen. All moves made by railway officials have tended to make financial situation as bad as possible with above end in view. I have no doubt plan is premeditated but it should not be allowed to materialize. If any foreign currency comes here as standard it should be Chinese but that Government is not strong enough without financial aid to supply necessary silver. I do not know policy of the United States but if it intends to keep the Open Door in Manchuria the Japanese plan if successful will deal it a fatal blow. Whoever controls railway will control trade of country including Siberia.

Repeated to Peking and Tokyo.

Stevens