File No. 893.51/772.
The Acting Secretary of State to the American Minister.
Washington, February 24, 1912.
The Department considers that, in general, any loan to China would be inopportune until a composite provisional government for [Page 110] the whole of China has been firmly established or unless such loans are indorsed by the de facto authorities of both North and South China. This applies to all loans, whether national, provincial, or private, and whether made by the quadripartite group or by individual Americans. With respect to future national and provincial loans the Department favors the broadest possible internationalization and believes that full participation should be offered to Russia and Japan.
With special reference to proposed loan to the Nanking Provisional Government the American group has been informed that if the loan is made to the joint Provisional Government or indorsed by the Nanking and Peking authorities this Government would approve provided the other Governments and groups agreed and on condition that full participation be given also to Japan and Russia.