File No. 893.51/1826
Minister Reinsch to the Secretary of State
Peking, November 10, 1917, 2 p.m.
My telegram November 2, 10 p.m. Minister of Finance by a formal letter to the representatives of the Consortium, received last night, requested an immediate advance of 2,000,000 pounds upon the suppplementary reorganization loan, this sum to be used for the redemption of notes of the Bank of China: he stated that [failing?] to receive the requested advance the Chinese Government would seek the money from other sources. In the negotiations thus far it has appeared that the Japanese bank alone favors making an advance before completing negotiations for conclusion of the new reorganization loan.
It is feared that the present request for immediate advance will result in giving Japanese bankers, perhaps independent of Consortium, the right to make a loan under terms establishing Japanese control of the Bank of China as well as the Bank of Communications.