893.51/2843

The Ambassador in Great Britain (Davis) to the Secretary of State

No. 2866

Sir: With reference to the Department’s telegraphic instruction No. 469 of May 8, 1920 6 p.m.,29 and previous correspondence relative to the Chinese Loan Consortium, I have the honor to transmit herewith enclosed, for the information of the Department, a copy of the Japanese Note to the Foreign Office and a copy of their reply thereto, dated May 10 and May 17 respectively.30

I have [etc.]

John W. Davis
[Page 543]
[Enclosure]

The British Foreign Office to the Japanese Embassy in Great Britain

No. F815/2/10

Memorandum

His Majesty’s Government have the honour to acknowledge the memorandum which the Japanese Ambassador handed to His Majesty’s Principal Secretary of State for Foreign Affairs on the 10th instant.

His Majesty’s Government are much gratified to learn that the Imperial Japanese Government in recording in point (1) of their memorandum of the 14th April31 Japan’s view in regard to the extension of the Taonanfu-Jehol Railway, were prompted by no desire to put forward any new condition or demand, and they are glad to note that their Ally is satisfied that His Majesty’s Government have no wish to do anything which would conflict with their vital interests. As regards point (2) His Majesty’s Government are happy to note that it was merely raised in order to set forth the circumstances in which the Imperial Government felt the need of the assistance and co-operation of the Powers concerned in the actual construction of the Railway from Taonanfu to Jehol and thence to the sea. They appreciate the fact that in thus giving a frank expression to their hope, the Japanese Government were inspired by no other desire than to make an appeal to the spirit of general co-operation which forms the foundation of the Consortium and which it is hoped will at all times inspire its operations and that they do not ask for explicit assurances in regard to the 2 points referred to above.

His Majesty’s Government are happy on their part to reaffirm the general assurance to which they declared their willingness to subscribe in the memorandum which Lord Curzon sent to Viscount Chinda on the 19th March32 to the effect that the Japanese Government need have no reason to apprehend that the Consortium would direct any activities affecting the security of the economic life and national defence of Japan and that the Japanese Government can firmly rely on the good faith of the Powers concerned to refuse to countenance any operations inimical to such interests.

His Majesty’s Government gladly note that the Imperial Government rely on the friendly spirit in which they have offered to renew their assurance and they are most gratified to find that, in view of the complete understanding now effected between the Governments [Page 544] concerned in regard to the principles upon which the Consortium will operate, the Japanese Government are prepared to lend their support to the conclusion of an arrangement between the banking groups and to give it the necessary confirmation.

In conclusion His Majesty’s Government would express the hope that the Japanese Group will immediately receive the required authorization, in order that the Consortium, which promises such great and enduring benefits to all the countries concerned, may be established and set in motion with the least possible delay.

  1. Not printed.
  2. Japanese note not printed; the same, mutatis mutandis, as the memorandum of May 8 from the Japanese Embassy at Washington, printed on p. 539, except for the insertion, after the second paragraph, of the following paragraph: “The Japanese Government are glad to learn further that the British Government are prepared to waive the objections which they had at one time offered to the exclusion from the Consortium of the two projected railway lines from Taonanfu to Changchun and from Taonanfu to Chengchiatun.”
  3. See memorandum from the Japanese Embassy, Apr. 3, and telegram no. 614 from the Ambassador in Great Britain, Apr. 15, pp. 523 and 528, respectively.
  4. See telegram no. 485, Mar. 20, from the Chargé in Great Britain, p. 517.