File No. 893.00/2731
The Secretary of State to the Secretary of War
Washington, November 26, 1917.
Sir: I have the honor to quote for your information and for such action as you may deem appropriate an excerpt from a despatch of October 9, 1917, from the American Consul General at Canton, China, regarding certain activities of the revolutionary government in that country:
The military government is in imperative need of funds. If it succeeds in obtaining $10,000,000 through the sale of its bonds, $2,000,000 is to be given to General Lu and a similar amount to General Tong. These leaders have always expressed the fear that the military government would prove a financial drain on their already practically depleted stock of funds. In being given this money they would see that the military government, instead of being a drag, is of material assistance. Three members of the Kuo Min Tang, including Sun Fo, the son of Sun Yat-sen, and Wong Chen-yun, a former commissioner of education of Fukien, left Canton on the 6th instant for Manila. They are holders of section six certificates, as travelers, issued by the local Commissioner of Foreign Affairs and [Page 112] visaed by me. These men plan to spend several months in the Philippine Islands, after which they will proceed to Java and the Straits Settlements, at all of which places they will endeavor to dispose of bonds to the Chinese residents.
The matter of the proposed sale in Hawaii of bonds of the new revolutionary government in South China was brought to the Department’s attention some weeks ago by the Chinese Legation here, whereupon the Department advised the Departments of the Treasury, Justice, Post Office and Labor and suggested that they might wish to communicate With the proper officials of their Departments, with a view to preventing, if possible, the admission of these bonds to the United States or Hawaii and their sale to an unsuspecting public.
This matter is brought to your attention with the suggestion that you may possibly wish to take steps to prevent the sale of these bonds or the future importation of similar bonds in the Philippine Islands.
For your confidential information I have to state that the latest information which the Department has received from the Consul General at Canton and the Chinese Minister here indicates that the movement in the South has not resulted in the establishment of any responsible, independent government in that region.
I have [etc.]