File No. 893.51/1856
Minister Reinsch to the Secretary of State
Peking, December 28, 1917, 10 a.m.
The Minister of Finance has informed the Group representatives that the Chinese Government desires an immediate advance of 2,000,000 pounds on the second reorganization loan, for the purpose of supporting the note issue of the Bank of China. The representative of the Japanese Group today informed his colleagues that he has instructions to promise the Chinese Government this advance. It is believed here this advance will not accomplish the purpose and will not be beneficial; the banknotes might better be supported by setting aside monthly amounts from the postponed Boxer indemnities.
It is hoped that the United States may now decide to participate, as with its cooperation a more adequate and beneficial financial policy could be formed. Please advise as to status of American participation.