File No. 893.51/1837
The French Ambassador to the Secretary of State
Washington, November 19, 1917.
Mr. Secretary of State, In announcing to me that negotiations on the loan for the Chinese currency reform have been entered into at Peking by the Chinese Government and the four representatives of the Consortium, the Minister of Foreign Affairs of the Republic brings to my notice the inclination ascribed to the Japanese Government to carry the transaction to the earliest possible conclusion and consequent [Page 155] advantage there would be in having the United States agree to reenter the Consortium and designate a financial group to represent its interests in the loan.
A later communication from my Government informs me that the Minister of France at Peking has reason to believe that the Japanese have told the Chinese Government that they would not object to American participation in the currency reform loan. This declaration, in my Government’s opinion, would make it but more desirable to designate an American Group in position to join in the contemplated transaction.
I am lastly instructed to impart to your excellency the information that, so far as the appointment of a Japanese financial adviser is concerned, the Government of the Republic has directed its representative in China to withhold his consent if the currency reform is to be dealt with, but to grant it if it be a question of taxes on real estate.
Be pleased [etc.]