893.51/4019

The Japanese Embassy to the Department of State

On the 15th of August last the Japanese Chargé d’Affaires, under instructions from his Government, had the honor to communicate verbally to the Honorable the Secretary of State the opinion of the Japanese Government on the question of advances up to $15,000,000 to the Chinese Government and of the negotiation of an agreement to consolidate the floating debts. The question was made the subject of an identic telegram dated July 10th52 from the representatives [Page 789] in Peking of the Four Powers to their respective Governments. The opinion of the Japanese Government was in substance as follows:—

1.
The Government, faithful to the principle of non-interference in Chinese domestic affairs, desires to abstain from giving assistance to any political party or faction in China.
2.
The Government is waiting for the establishment of a unified government based upon the will of the Chinese people, and as soon as such a condition is established, will be ready to give assistance.
3.
The Government in adopting this policy is guided by the spirit of the Treaty and resolutions of the Washington Conference.
4.
Conditions in China are still unsettled and assistance to the Peking Government at this time might complicate still further the situation.
5.
Although the Japanese Government is in accord with the principle involved in the identic telegram of the representatives of the Four Powers, it regards the proposed extension of financial assistance to the Chinese Government at this time as premature.

Again, on the 21st of August, the Japanese Embassy took the liberty of presenting to the Department of State a summarized statement of the Chinese political situation53 and of communicating the Japanese Government’s belief that to give assistance to the Peking Government would amount to an extension of aid to the faction which happened to be behind the Peking Government at the moment.

The Group representatives in Peking, in answer to London’s expression of a desire to continue negotiations, reported on the 30th August that it was impossible to continue negotiations as there was no responsible Government and as the situation was getting worse instead of improving.

Recently, on October 2, the subject of debt consolidation and monthly advances was again discussed between the Group representatives in Peking and the Ministers of Finance and for Foreign Affairs. The debt to be dealt with was estimated by the Chinese authorities at the equivalent of Chinese $100,000,000 of which $70,000,000 could be funded and $30,000,000 liquidated in cash. The debts of the Ministry of Communications were, however, not included in this estimate. The total amount of the monthly advances were figured at $18,000,000, to be spread over six months.

The Japanese Government believes that the present situation in China is no better than it was a few months ago; the factional contest between Chihli and Fengtien continues and new trouble has arisen in Fukien. Therefore the Government now holds the same views as those communicated to the Secretary of State on the 15th of August.

Although the question is secondary and has, at present, no direct bearing on the subject, the Japanese Government would like to add [Page 790] that whenever the question of consolidation of debts is to be taken up, the entire debt, including debts of the Ministry of Communications, ought to be dealt with as a whole.

  1. See telegram no. 299, July 10, from the Minister in China, p. 779.
  2. Not printed.