861.77/1600: Telegram
The Ambassador in Great Britain (Davis) to the Secretary of State
[Received July 8—4:07 p.m.]
1032. Your 694, June 30, 8 p.m., which my 1014, July 1, 6 p.m.,57 largely concerns, discussed informally on 7th with Foreign Office which expresses apprehension lest “bankruptcy commission” would imply not only complete insolvency but might have directly adverse effect on French interests and those of Russo-Asiatic Bank. The opinion was further advanced that the proposed arrangement appears merely to take us round the circle again into a consortium of a more complicated form which Japan’s probable contentions would again block. It would therefore appreciate an explanation of the reasons for proposed nomenclature and what such commission could accomplish as regards financing of the railway inasmuch as the consortium appears to embody the only interests, able or willing, now to loan money for maintaining. It would also welcome definite information as to the present financial status of railroad and how long it can operate, to supplement figures furnished British Legation, Peking, of May 12th (20th?) last.
[Paraphrase]
No information from France. Great Britain, I gather, would not be opposed to taking a firm attitude in favor of the plan proposed at first, on the basis that although local Japanese conditions are regretted they cannot be allowed to completely break up the plan, and if a strong stand of this kind should not bring the desired result, the Japanese Government might be requested to offer a substitute. The Foreign Office has instructed Embassy at Washington to take up with you all of the above, not including this paragraph.
- Latter not printed.↩