894.51 So 8/1: Telegram

The Secretary of State to the Chargé in China ( Mayer )

[Paraphrase]

385. Your telegrams Nos. 1008 of November 19, noon, and 1010 of November 19, 2 p.m.53 Before Lamont went to Japan his trip was [Page 484] represented to us as one of no particular significance. It was understood that no loans or financing were contemplated. When Lamont returned he reported, and it was also reported in the press, that the Japanese Government had approached him on the subject of making a $30,000,000 loan to the South Manchuria Railway, which loan would be guaranteed by the Japanese Government. Lamont has informally inquired of the Department as to whether our Government would have any objection to such a loan.

The Department is anxious to know your opinion as to the possible reaction in China should the Japanese Government make such a loan in this country for the South Manchuria Railway and any additional information you can give respecting discrimination against American commerce and Japanese opposition to railway construction in Manchuria by China. Please telegraph full reply as soon as possible.

Kellogg
  1. Latter not printed.