893.51/4164: Telegram
The Ambassador in Japan (Warren) to the Secretary of State
[Received January 27—10:32 a.m.]
9. My number 2, January 17th, 4 p.m. Recently the British Ambassador informed me that his Government now suggests that the Japanese Government be asked to consent to a small loan to the Chinese Government above the total of the consolidated external and internal floating debt, so as to provide some free funds if a basis for consolidation is determined. At his request and on my own account, I took the matter up with Count Uchida who yesterday told me that the Japanese Government would not like to have this suggestion made use of as cover for any considerable new loan under present conditions, but that his Government would not object, as he previously stated, to the representatives of the Japanese group of bankers joining in the discussion with other representatives with Chinese Government looking toward the consolidation of the Chinese debt, internal and external, and taking under consideration the advisability of a small additional loan that could be identified with consolidation or refunding loans, provided a basis for consolidation is reached with the Chinese Government.