File 893.51/134.
The American Minister to the Secretary of State.
Peking, October 2, 1910.
Duke Tsai-tse and Sheng Kung Pao suggest that if our bankers are willing to undertake a currency loan of 50,000,000 gold dollars, the Manchurian loan1 of 20,000,000 taels should be included therein, as they do not want an Imperial loan for Manchuria to be treated differently from one for the rest of China, The guaranties will be one half in Manchuria and one half in China, embracing unpledged customs and likin. This, it was declared, was ample security, and China was, further, free to dispose of the recent increase in customs receipts resulting from the increased volume of trade; but I doubt that the treaty powers will share this view.
The Chinese Government desires to negotiate this loan entirely with us, and I was told that it had not yet been offered to anyone else. We shall however be at liberty to offer the bonds in other markets.
The request for a financial expert was repeated, and it was urged that he come with all possible speed, for fear that other powers hear of these negotiations and impede them. It was further stated that if we make this loan an American would be appointed as financial adviser, in a purely consultative capacity, to assist the currency reform, having nothing to do with the loan negotiations.
- This is later referred to as the “Industrial Development Loan.”↩