893.51/3549: Telegram

The Minister in China ( Schurman ) to the Secretary of State

383. Your 291, October 31. Personally handed Chinese text to Premier November 1, following morning to the Minister for Foreign Affairs with whom I had earnest conference. Premier expressed profound regret of Government at default and hoped that assistance of American Government not diminished thereby at Conference. Chinese text also personally handed Minister Finance.

Abbott and Stevens had separate conference with Minister of Finance this afternoon, Peck72 present at request of both. It appears that Minister of Finance in order to minimize popular opposition to any wine and tobacco loan would prefer engage in new contract with Chicago Bank loan and therefore would prefer to continue negotiations with Abbott. Loath to negotiate with Stevens as representative of international consortium though willing to accept him as representative of American group. They insist confidentially against any transfer of contract rights to Japanese. Government seems more anxious to negotiate than before default but no result yet achieved.

  1. Willys R. Peck, Chinese Secretary of the American Legation.