File No. 893.00/745.
The American Minister to the Secretary of State.
Peking, December 6, 1911.
The Prince Regent has been induced by Yuan Shih Kai to resign. It is now believed that some agreement will be concluded with the revolutionists. But without financial assistance at this critical moment Yuan will not be able to hold his troops together and negotiations will fail.
The British, in behalf of the groups, some time ago opened negotiations with Yuan for a loan, but dropped them because the British Minister opposed. This evening however the Minister advised the manager of the Hongkong Bank to resume negotiations, promising the British Legation’s support. The French Chargé d’Affaires has urged upon me the necessity for the loan. I have not seen the German Minister this evening, but his banking representative is in accord with other bankers. Groups’ representatives are to-night telegraphing their principals for authority to advance Yuan 3,000,000 taels to tide him over the period of negotiation.
This, I believe, is the crisis of Yuan’s attempt to restore order and he will fail unless supported, with nothing in sight but anarchy. I earnestly advise Department’s support of this loan.