Office of the Historian

File No. 893.77/1656

The French Ambassador ( Jusserand) to the Secretary of State

[Translation]
Washington, February 5, 1918.

Mr. Secretary of State: The attention of the Government of the Republic has been drawn to the advantage that could be taken of existing circumstances in recasting the agreements that now bind the Allied financial groups with regard to the Hukuang lines so as to eliminate the German group.

These agreements for which there is a historic explanation are irksome to all and a never-ending source of conflicts. The French group represented by the Banque de l’Indo-Chine thinks it would be beneficial to start them anew on entirely different bases and that by heeding the lessons of past experience an agreement may be arrived at that is likely to live and will be acceptable to the Chinese besides securing the future of the lines.

[Page 200]

The representative of the French group broached the question to his American colleague who coincides in his views and drew up on the subject favorable recommendations that are no doubt known to his Government. The English representative likewise thinks it necessary to perfect a new agreement before the end of the war, and has also made his opinion known in London. Under these conditions it seems that the negotiations which were begun in 1914 on the subject can be resumed at once and speedily carried to a successful conclusion.

But before taking active steps in these new negotiations the financial groups would like to have the three Governments concerned agree on the principle. The initiative of the French group meets with the full approval of the Government of the Republic which wishes me to draw your excellency’s attention to the great interest which attaches to taking away from our enemy the power to resume his place in the former Hukuang agreement at the end of the hostilities.

Mr. Pichon would be glad if your excellency could find it possible to concur in this opinion and advise the American group that you would countenance negotiations in that direction with the French and English groups.

Be pleased [etc.]

Jusserand

The Secretary of State to the French Ambassador ( Jusserand)

No. 2069
Washington, February 15, 1918.

Excellency: I have the honor to acknowledge the receipt of your excellency’s note of the 5th instant communicating the views of your Government in support of the proposals of the French and British groups concerned that the Hukuang Railway agreements should be recast in such a manner as to eliminate the German group from further interest therein.

I shall be glad to have you say to your Government that its suggestions will have my very careful consideration, and that as soon as a decision is reached in regard to the matter I shall have pleasure in communicating it through your excellency.

Accept [etc.]

Robert Lansing