File No. 893.51/142.

The Acting Secretary of State to the American Minister.

[Telegram.—Paraphrase.—Extract.]

Yesterday the group read the substance of your telegram of October 2 and their formal reply has been received, saying that they are pleased to undertake the loan and ready to discuss the details of the agreement and the guaranties and their apportionment between China proper and Manchuria; and that they are prepared to send to Peking a financier of experience to conduct the negotiations.

In view of this acceptance of the Imperial Government’s latest proposition the Department and the group assume; that all negotiations for a separate Manchurian loan will be abandoned and the Viceroy of Manchuria so instructed at once.

You will communicate the foregoing to the Chinese authorities concerned, immediately and in writing, and obtain an acknowledgment.

Adee.