861.77/2127
The British Ambassador (Geddes) to the Secretary of State
His Britannic Majesty’s Ambassador presents his compliments to the Secretary of State and has the honour to inform him, by direction of his Government, that recently a detailed account of a loan to the Chinese Eastern Railway appeared in the Japanese press and that His Majesty’s Ambassador at Tokio enquired of the Minister of Foreign Affairs if it was true. The latter replied that the Japanese Government had nothing to do with any such loan but that he thought that the Russian Manager of the Railway had approached various Japanese banks. His Majesty’s Ambassador said that he did not think the manager had any right to negotiate loans independently of International Committees which control the railway and that these latter, so far as he was aware, had not taken any steps about a loan. The Minister for Foreign Affairs admitted that this might be true so far as large loans from Governments were concerned, but said that the South Manchurian railway had advanced [Page 588] coal to the Chinese Eastern Railway which was equivalent to a loan and that in the same way the manager was probably trying to obtain sufficient money to tide over immediate difficulties.
The Minister for Foreign Affairs added that the Japanese Government were ready to join other Governments interested in a loan. He thought that perhaps France and Great Britain might not care to join in this loan, in which case it might perhaps be divided between the United States and Japan.
In informing the Secretary of State of the above, His Majesty’s Ambassador is directed to call his special attention to the immediately preceding paragraph from which, in the opinion of His Majesty’s Government, there seems reason to believe that the prospects of a loan by the Consortium are ripening but China’s attitude is still unknown.