893.51/4188: Telegram
The Chargé in Japan ( Wilson ) to the Secretary of State
[Received February 22—3:58 a.m.]
15. Department’s 12, February 1, 5 p.m., and 14, February 16, 6 p.m. I saw Uchida last night and he told me that he must have [Page 531] failed to give Ambassador Warren a clear understanding of his meaning. Uchida referred to the phrase, “They are not unprepared to continue the consideration in common with the other Powers concerned” used in the note from the Japanese Embassy to the Department December 28, quoted in the second paragraph of Department’s telegram no. 2, January 12, 4 [3] p.m. Uchida declared that he always had in his mind the Consortium Powers other than China, and that this was the interpretation he had in mind always when he was talking with Ambassador Warren. Uchida is willing to grant authority to the Japanese banking group to negotiate with the banking groups of the other lending countries with a view to making such recommendations to each of the Governments as the groups may agree upon with respect to consolidating the Chinese debts. The question of authorizing their respective groups to enter into negotiations with China on such a basis could then be considered by the Governments concerned. The reason which Uchida gives for this policy is that if negotiations are carried on directly with China the Chinese will assume that the Consortium is prepared to discuss the question on the basis proposed by China. Uchida is not willing to have the Chinese receive such an impression.
My British colleague has informed me that he has reported to his Government that his understanding of Uchida’s views are those outlined above.
Uchida says with respect to a supplementary loan in addition to that necessary for consolidation that if it is necessary he does not exclude the possibility of a small advance. He wishes, however, to have the discussion of this question postponed until after the broader consideration of consolidation among the Consortium groups of the lending countries.