File No. 5315/284.

Ambassador Hill to the Secretary of State.

[Telegram.—Paraphrase.]

Mr. Hill reports that the secretary of state for foreign affairs has informed him that the Imperial German Government has recommended to the German bankers to arrange for American participation in Hankow-Szechuen loan, and that the secretary does not doubt that the German bankers will follow this advice, adds that, in the secretary’s opinion, it will facilitate a good understanding if the American bankers (will not delay nor essentially modify the existing agreement with the Chinese Government, and will make their conditions as light as possible.}