The British Chargé (Lindsay) to the Secretary of State

Sir: With reference to my note No. 917 of the 31st ultimo,58 I have the honour to inform you, by direction of my Government, that His Majesty’s Representative at Pekin has been informed that the French Government’s views regarding the immediate loan of £5,000,000.00, are now in general agreement with those of the Japanese Government and those of His Majesty’s Government.

The French Government have instructed their Minister at Pekin to join His Majesty’s Minister in asking the Chinese Government for definite particulars of “most pressing needs” to which the money is to be applied; to insist on the gradual disbandment of troops without making it an absolute condition of the loan now that the Japanese are no longer opposed to demanding disbandment, to urge that negotiations [Page 606] between the North and the South be resumed, disbandment of Southern troops proceeding pari passu with that of the Northern, and that the money must be spent for the general good of China. The preceding details to be stated in the loan contract terms which will be drawn up by the Legations and Banks interested; the French Minister is also to consult His Majesty’s Minister, and the United States and Japanese Ministers as to the procedure for control of expenditure and regarding the disbandment on the lines indicated.

His Majesty’s Minister is being instructed to cooperate with the French Minister in these preliminary steps, and His Majesty’s Government has directed me to express the hope that the United States Government will send similar instructions to their representative at Pekin.

I have [etc.]

R. C. Lindsay