861.77/2200: Telegram
The Chargé in Japan (Bell) to the Secretary of State
[Received August 12—3:47 a.m.]
272. Your 123, August 3, 6 p.m. Following from Stevens:
“August 10, 10 a.m. Replying to Department’s telegram August 3, 6 p.m. 1st. There is great necessity for financial aid whether by an issue of bonds or otherwise. 2d. The loan is necessary. 3d. Amount $10,000,000 gold 15-year 8 percent bonds redeemable after 5 years at 105. Security, mortgage on all movable and immovable property of company wherever it may be. Very conservative estimate value $100,000,000 gold, cost much more. With normal conditions efficient management, certain money-maker. It may be claims of former Russian Government might constitute prior lien. I now believe that bonds signed by president of railway who was appointed by the Chinese Government under the treaty of September 8th, 1896, would be legal and if countersigned by Technical Board that by reason of Allied railway agreement they would then be guaranteed by the various nations. Department will understand that the security noted represents merely my opinion, as in view of the situation [Page 601] as stated in my cipher telegram August 9, 10 a.m., matter cannot safely be taken up here until the placing loan assured and the Chinese Government properly persuaded.[”]