893.51/2900
The Japanese Embassy to the Department of State
Aide-Memoire
The American Minister at Peking informed his Japanese colleague on July 8 that he had addressed to the Chinese Government a communication pointing out China’s violation of the terms of the loan undertaken by the Pacific Development Corporation in 1919.
It will be remembered that when the conclusion of that financial undertaking was made known, the Japanese Government invited the attention of the American Government to certain features of the loan which seemed to be in conflict, not only with the rights secured to the existing Consortium under the Agreement of the First Reorganization Loan, but also with the broader principle of international co-operation in the matter of financial assistance to China. The American Government then promptly declared its intention of withholding diplomatic support to the loan in question.
It is realized that the action now taken by the American Minister at Peking was rendered necessary by the failure of the Chinese Government to give effect to the terms of the contract with American concerns. It, however, appears to imply an official support to the loan, and the Japanese Government had expected that before any such steps were taken, the Consortium Powers would be consulted fully and frankly.
The present action of the American Minister, coupled with his recent independent communication to the Chinese Government of the Kajiwara-Lamont notes8 without common consent of both parties to that correspondence and in disregard of the expressed views of the Japanese Representative, seems to be hardly in line with the policy of mutual co-operation among the interested Powers, which, it is confidently believed, actuates the Government of the United States, no less than the Japanese Government.
In bringing these considerations to the notice of the State Department, the Japanese Government have solely in view the sincere desire to remove all cause of misunderstanding in the functioning of the new Consortium, and to maintain and strengthen the spirit of harmony among the nations participating in that international enterprise.