File No. 5315/348.
The Secretary of State to Chargé Fletcher.
Washington, July 15, 1909.
Mr. Knox refers to Mr. Fletcher’s telegrams of July 13 and 14 and informs him that he may solemnly warn the Government of China that there appears no reason to doubt that, as a result of early meetings in Paris or Berlin, the American group will reach with the European bankers an agreement for equal participation in the present loan by American capital; that it would be inconsistent with the dignity and moral right of the United States and with a policy hitherto friendly on the part of China if the United States were expected for one moment to consider less than such equal participation, and that if the reasonable wishes of this Government should now be thwarted the whole responsibility would rest upon the Chinese Government, which in return for the uniform friendliness of the United States, disregarding its obligation and its true interests, would have evaded by petty excuses its true duty and would have acted with singular unfriendliness to the United States.
Says that in view of the expressions of the German, French, and English Governments recognizing the equity of American demand for participation and having regard to China’s specific promises and moral obligations to this Government, the department is amazed at the apparent influence of individuals in so long retarding the consummation of so equitable an arrangement as is proposed.
Mr. Knox says that this Government greatly deplores a situation in which it seems that individuals in China or elsewhere are able to defeat the practical operations of the policy of the open door and equal opportunity, and if the objections of bankers of other countries to equal American participation are so insistent as not to be overcome by the wishes of China and of their own Governments, the time has arrived when China should exercise its right to determine the matter by confining her dealings to those who are willing to respect her highest interests. Says that Americans would welcome an opportunity to arrange for the whole loan, if necessary, by reason of further persistency of the individuals who refuse to meet the situation broadly.
Informs Mr. Fletcher of the sending of telegram to-day by the President to His Imperial Highness Prince Chun.1
Tells Mr. Fletcher he should be able to make sure, through the foreign office, of its delivery and friendly explanation by them to the regent, and he may, if custom permit and if it is advisable, seek an audience also with the regent.
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