861.77/2127
The Department of State to the British Embassy
Memorandum
The Government of the United States desires to express its appreciation of the courtesy of the British Government in supplying the information contained in the memorandum submitted on the 21st instant in which the British Ambassador, on instructions from the British Government, called attention to a reported Japanese loan to the Chinese Eastern Railway.
The Government has noted with particular appreciation the firm stand taken by the British Ambassador at Tokyo in his conversation with the Japanese Minister of Foreign Affairs. The views of the British Government as expressed by Sir Charles Eliot are in harmony with those of this Government, namely, that the Russian [Page 590] manager of the Chinese Eastern Railway has no right to negotiate loans independently of the inter-allied control of the railway.
The Government of the United States is gratified to learn that the Japanese Government concurs in this view in so far as large loans from governments are concerned, and is ready to join with other interested governments in arranging a loan to the Chinese Eastern Railway.
The substance of the British Ambassador’s memorandum has been cabled to Mr. John F. Stevens, President of the Inter-Allied Technical Board of the Chinese Eastern Railway and his suggestions and recommendations solicited.