793.94/1247: Telegram
The Ambassador in Japan (Warren) to the Secretary of State
[Received December 26—3:35 p.m.]
435. Your 220, December 21, 6 p.m. In an interview at the Foreign Office Minister Uchida told me that the proposal of the Japanese conference delegation to sell the Japanese interest in the Shantung Railroad would be supported by the Japanese Government, but he said that Chinese Treasury notes would not be accepted in payment. He said that a large sum was already owing to Japan from the Chinese Government, part of which debt was now overdue. Uchida said that the Japanese delegates to the Washington Conference had exceeded their powers in proposing forms of payment.
Uchida told me that the question had been considered by the Diplomatic Advisory Council and by the Cabinet and that as a result the delegates had just been instructed to agree to the sale of Japan’s [Page 939] interest in the railroad for an amount to be agreed upon on the proposed basis, with payment by means of long-term bonds issued on the security of a loan contract of similar character to contracts made for loans from other countries or their nationals for railway purposes, with such supervision included as China in such cases has customarily granted.