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[This Document is the Property of His Britannic Majesty's Government.]

AFFAIRS OF CHINA.

CONFIDENTIAL.

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[45378]

621

[December 16.]

SECTION 1,

RE

Buy 7 JAN II

!!

No. 1.

Mr. Mitchell Innes to Sir Edward Grey.~(Received December 16.)

Washington, December 2, 1910.

(No. 228.) Sir,

I GATHER from your telegram No. 122 of the 24th ultimo that you had understood the wording of Mr. Knox's note, as telegraphed by me, to mean that though the European groups would share in the privileges of the loan, the contract would be signed by the American group alone. The ambiguity of the language used-a not uncommon feature of Mr. Knox's notes-certainly led both the German Ambassador (who had received a similar-probably an identical-note) and myself to this interpretation, and I suppose that both Count Bernstorff and M. Jusserand informed their Governments in this sense. At any rate, the proposal to make joint representations in Peking emanated from the latter.

The head of the Far Eastern Division, to whom I spoke on the subject of the proposed representations in Peking, corrected the erroneous impression, but frankly said that it was doubtful whether joint signature would be possible. Indeed, he did not seem very optimistic as to the success of the negotiations, there was much to be done and many difficulties to overcome before the question of the signature of the agreement could be discussed. In the meantime, he thought that any representations made at this stage of the negotiations would tend rather to embarrass than to help matters.

I have, &c.

MITCHELL INNES.

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