793.94/1254: Telegram
The Ambassador in Japan ( Warren ) to the Secretary of State
[Received 9:37 p.m.]
4. Department’s no. 220 of December 21 and my no. 435 of December 26. In order to ascertain the real attitude of the Japanese Government regarding Shantung I have frequently talked at the Foreign Office with Uchida. He still insists that the means by which the Chinese Government may buy the railway must be by money obtained by a loan made by Japanese bankers who will take a lien on the railway as security. This loan would run for 15 years with optional payment after 5 years. Technical representatives and some accounting would also be provided.
[Page 940]Uchida explained that a fixed period, before payment would be possible, was desired so as to insure the operation of the railway, thus preventing impairment of the economic position of the Japanese interests within the territory which is dependent upon this railway.
It is my opinion that Japan will make definite terms for selling the railway if she is now pressed constantly for settlement and if the Chinese can be induced to agree to definite terms.
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