The Secretary of State to the American Group
Gentlemen: I have to refer to previous correspondence concerning the proposed emergency loan to the Government of China, in [Page 630]particular reference to the qeustion of an advance to be made in the event of its proving impossible to conclude the negotiations for such a loan by the 19th instant in order to enable the Chinese Government to meet at least the more urgent financial requirements incident to the Chinese New Year.
In behalf of the Japanese Ambassador the Counselor of the Japanese Embassy called yesterday at the Division of Far Eastern Affairs and stated that the Embassy had received from the Foreign Office at Tokyo an instruction to request the good offices of this Department in urging upon the American Group the importance of its cooperating with the Japanese Group in making such an advance in case it should prove necessary to do so in order to prevent grave embarrassment to the Chinese Government on the occasion of the customary New Year settlement day; and he intimated that, failing the cooperation of the American Group, the Japanese Group might find it necessary to act independently in order to save the situation. He also requested that this Department ascertain and communicate to the Japanese Embassy the disposition of the American Group in this matter.
As was reported in a telegram from the American Chargé d’Affaires at Peking dated February 8th, of which a paraphrase was forwarded on the 9th for your information, the Chinese Government has advised the four interested Legations of its acceptance of the proposed terms for the emergency loan of £5,000,000, and has requested an immediate advance of $7,000,000. In view of this situation, the Department ventures to hope that the American Group may see its way to authorizing its representative in Peking to make, jointly with the representative of the Japanese Group, and with the concurrence of the British and French representatives, such an advance as may prove requisite in the circumstances.
The Department would appreciate receiving from you an early indication of your views on this question, for communication to the Japanese Embassy here, as well as to the American Legation at Peking for its information.
I am [etc.]
Second Assistant Secretary