File No. 893.51/921.
The American Ambassador to France to the Secretary of State.
Paris, June 3, 1912—10 a.m.
The following is translation of French memorandum replying to the one contained in your May 27, 2 p.m. [May 18]: [Page 136]
On May 21 the Embassy of the United States was so kind as to make known the sentiment of the American Government regarding the request, such as that of Austria and Italy, for participation in the group of powers, and to express the idea that it should be practical to avoid the semblance of monopoly as well as of excessive foreign interference. On the first point the question is no longer complete. Although the Governments have testified their sympathy with the Austrian request, from a political point of view, the bankers rejected it at the London conference from the financial point of view, which is their province. Moreover, it may be observed in general that Austria is not the only one to formulate a request for participation and, no less than she, would the other demanding powers be disposed to be satisfied with a minor participation.
The guaranties of the bulk loan, the control of the employment of funds, the financial and administrative reorganization of China by the assistance of foreign experts—all these, in the actual condition of China, are obligations imposed upon the markets destined ultimately to support the burden of the loans. Moreover, the French Government has, like that of the United States, the desire to treat with the greatest consideration the Chinese people’s feelings and will exert herself to find the formula most acceptable to their self-respect. The question in all its aspects will be examined in concord by the interested powers, since the program of the loan of reorganization will not be left to the dispositions of the bankers, but will form the subject of an agreement between the governments.