793.94/1256: Telegram
The Minister in China (Schurman) to the Secretary of State
[Received January 18—9:45 a.m.]
16. Today at a tea given by the President I met W. W. Yen, Minister for Foreign Affairs. After a whispered conversation with the Premier, Dr. Yen informed me that the substance of the MacMurray-Lampson alternative proposals22 for settling the Shantung issue had been received by them. There were four proposals and they were asked to choose three. Subsequently, the Premier in a message to the Chinese people declared for the plan of cash redemption. He personally pledged one-tenth of the 30,000,000 necessary. Opponents who were attacking him on the Shantung issue might be “dished” by this action, but the issue would not be settled in this way, because while the Chinese Government had only patriots to consider, unyielding militarists had to be satisfied in Japan. The Shantung issue might remain to plague them for years if not settled now. It was the earnest desire of the President that the matter be settled at once.
In taking the responsibility for determining the attitude of China on the proposals mentioned above, Dr. Yen had decided to sacrifice himself to the [apparent omission]. The Chinese people today would denounce any plan except the Premier’s scheme for cash redemption. Dr. Yen, however, was prepared to resign anyway. As the Governor and Tuchun of Kiangsu Province, Wu Pei-fu supporters, have assailed the Premier’s interference in the Shantung issue in a telegram to Peking and have insisted that the question be left entirely in the hands of Dr. Yen, who was trusted by them and by the Chinese people, the Minister for Foreign Affairs has decided to take them at their word. As the telegrams sent by Wu Pei-fu might confuse China’s delegation at the Washington Conference and as they might feel that [Page 941] Dr. Yen was placing all responsibility upon the delegates, it was the more necessary that Dr. Yen should make a decision.
The Foreign Minister would bar the second of the proposals, that contemplating a loan from the Japanese bankers. He thought that he would cable his decision in two or three days to Washington, announcing his choice of the other three proposals. It would be necessary first to secure the assurance of cooperation by Chinese bankers as one of the plans involved adoption by them.
Dr. Yen earnestly desires aid of Secretary Hughes, as he thinks that otherwise, despite his own action in taking responsibility and sacrificing his office, it would be impossible to reach an agreement at Washington. Although Dr. Yen’s policy will be unpopular for the present, he thinks that after some months it may be appreciated by the people of China.
I asked whether it was likely that the present Cabinet would continue after the Chinese New Year. Dr. Yen said no. He deprecated the sending of poltical telegrams by Wu Pei-fu. This telegram is sent by wireless, as the Pacific cable is broken.