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The reply which I have returned is similar to that

given by you to the United States Chargé d'Affaires and

have added that in December 1905 we regarded the Ameri-

can offer as having lapsed and so informed the Embassy

privately.

I further pointed out that as far as British fl-

nanciers were concerned, it was clear that they were

entitled to act independently and could not be expected

to do otherwise after what had passed at the same time

that nothing was further from our intention than to

prejudice any obligations or rights existing between

China and the United States.

2.

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