File No. 893.51/825.
The American Minister to the Secretary of State.
Peking, March 30, 1912—6 p.m.
New-born enthusiasm tends to extravagant expenditures. If China is saved she must be protected from financial improvidence. Indiscriminate borrowing and reckless competition between bankers should be prevented. The plan suggested in your March 19, 7 p.m., tends to that end and justifies monopolistic feature, which may be regulated by friendly nations. It affords bankers fixed compensation, secures their experienced service, and gives China benefit of the markets. The agency term, ten years, will carry China over reorganization period. I am disposed therefore to approve the plan in principle but am not committed to all its details.