893.51/4164: Telegram
The Secretary of State to the Ambassador in Japan ( Warren )40
12. Your telegrams No. 2 January 17, 4 p.m. No. 9, January 27, 7 p.m.
Japanese Chargé d’Affaires with whom the substance of your No. 2 was discussed by the Division of Far Eastern Affairs and who appears to have telegraphed his Government that its views on the subject seemed closely to approximate ours now advises the Division that he has received from Minister for Foreign Affairs a report of his conversation with Mr. Warren on January 16th from which it appears that Count Uchida intended only to be understood as indicating no objection to the discussion among the Powers of proposals for a funding loan without reference to the Chinese Government’s request for a loan. Chargé d’Affaires understands this to mean that Japan consents only to discussion among the interested Powers other [Page 530] than China. He also understands from the advices thus far received from his Government that Japan does not favor the idea of a loan making available to the Peking Government any balance of free funds over the amount required for consolidation or funding of debts.
He says he will at once telegraph the Minister for Foreign Affairs suggesting that he take occasion to explain to you the apparent misunderstanding of the attitude of the Japanese Government.
For your information and guidance I should make clear to you that this Government would wish to see the unsecured Chinese debts arranged and the credit of China rehabilitated in advance of the Special Conference on the Chinese Tariff. It therefore favors and understands the British Government likewise favors the view which Embassy’s Nos. 2 and 9 above cited seemed to indicate the Japanese Government’s willingness to accept, namely, that the Consortium should discuss with the Chinese Government the loan proposals made by that Government with a view to the possibility of negotiating a loan which would cover the consolidation or funding of the floating debt and in addition thereto (if necessary, as would doubtless be the case) such a minimum of funds for approved purposes as would enable the Peking Government to meet its genuine administrative necessities without enabling the controlling faction to strengthen its position as against rival factions.
Repeat to Peking as No. 22 and mail copies of Department’s No. 2 and of your Nos. 2 and 9.
- See last paragraph for instructions to repeat to Peking as no. 22. Substantially the same telegram sent Feb. 3, as no. 22, to the Ambassador in Great Britain, with instructions to read to Mr. Wellesley, chief of the Division of Far Eastern Affairs, British Foreign Office.↩