893.51/2643: Telegram

The Secretary of State to the Ambassador in Japan (Morris)

37. Attached copy of message just sent to Legation at Peking explains itself.

[Here follows copy of the telegram printed supra, with the omission of the first and last paragraphs.]

In addition to the foregoing the American Group reports to us that it is in active and amicable conferences from day to day with the American representatives of the Yokohama Specie Bank, which is the head of the Japanese Group, and that with this group it has now arrived upon a mutual satisfactory understanding as to the terms of the proposed emergency loan to China; that these terms have, in the name of both the American and Japanese Groups, been communicated to Peking. It is hardly necessary for us to point out that if in the course of these amicable and important discussions another Japanese Group should undertake a separate negotiation, or if the Japanese Government should encourage it to do the same, the effect upon the American Group and on the investment public here generally would be unfortunate.

We are greatly in hopes that upon his arrival in Japan Mr. Lamont will be able to straighten out the matter of the Pacific Development Company loan and secure its transfer to the American Group—an end to be desired fully as much by Japan as by America—inasmuch as such solution would, as hitherto pointed out, mean the control of this loan through the consortium by all four of the interested powers. It is greatly to be hoped that the Japanese Government will take no action to destroy such a desirable consummation.

Repeat to Peking for its information the above two paragraphs.