File No. 893.51/1345.
The American Ambassador to France to the Secretary of State.
Paris, March 8, 1913.
It seems to me evident, on reviewing the history of the Chinese loan negotiations, that with the increase of the consortium from four to six powers began a persistent effort to disrupt the consortium, and that China is excluded from making loans in the world’s financial markets as long as the six powers hold together.
The desire, the interest and the policy of the United States have been to maintain the integrity of China and further her rehabilitation. In order to extricate ourselves from the false position in which these dilatory negotiations place us and to continue that policy, does it not seem proper to attempt to relieve China from this embargo of financial exclusion?
To obtain this relief, the loan should be concluded forthwith or the six-power group should be dissolved and China be given a free hand to borrow where she will.
If the Department should find that a new group desirous of aiding China and of making an immediate loan could be formed, or that an adequate loan could be financed in America, would it not be a friendly act of great assistance to China and most gratefully appreciated by her, if the United States should announce to the five other powers that the loan must be immediately concluded or the United States would withdraw, reserving to itself all rights in the premises? It seems certain that such an action would force an issue one way or the other.