File No. 893.51/1317.

The American Ambassador to Germany to the Secretary of State.

[Telegram—Paraphrase.]

Department’s February 17, 6 p.m. and February 23, 10 p.m. German Foreign Office is awaiting the reply of British Government regarding appointment of German deputy inspector of salt gabelle at Shanghai, and is inclined to view the various proposals as mere subterfuges to cause delays with a view to eventually forcing foreign [Page 165] control in all departments. Advices received from German Minister at Peking indicate that the Chinese Government never definitely intimated its willingness to accept original French proposal and consequently not apt to accept extended form now under consideration. Reports have reached Foreign Office that the American group has recently decided not to issue their full quota as stated in Department’s telegram February 10, 6 p.m. This if true would be very regrettable, as it would place the Government as well as American banking group in a position of inferiority.

Leishman.