[This Document is the Property of His Britannic Majesty's Government.]
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AFFAIRS OF CHINA.
19097
[May 30.]
RECO
&
CONFIDENTIAL.
REGP 16 JUN 11
SECTION 2.
No. 1.
[21402]
Sir Edward Grey to Mr. Bryce.
(No. 241.) Sir,
AS Mr. Whitelaw Reid had asked me a few days ago what were the diplomatic
Foreign Office, May 30, 1911. difficulties in connection with the Chinese loan I told him to-day what had passed with the Japanese Ambassador, and how I thought the apprehension of Japan that she was being excluded from all future enterprise in Manchuria could be removed. Since Mr. Whitelaw Reid had put the question to me I had been approached by both the Russian and French Ambassadors. The Russian Government were afraid that the loan was to be used to construct a railway, to which they objected, and the French Government were naturally anxious to support the Russian Government.
So far as I know, the object of the loan was not necessarily to promote railway enterprise in Manchuria. If the four groups could arrange the specifle programme of industrial enterprise with the Chinese Government so as not to include railways, and then let the programme be known, I thought that all diplomatic difficulties would disappear. It should be quite possible to do this if, jas not make a point of expending the loan upon railways, but only wished it to be used supposed, the groups did for useful industrial enterprise in Manchuria, for which there was ample scope in other directions. It would surely be much better to get rid of the difficulties and apprehensions in this way rather than to have some legations in Peking supporting the loan and some opposing it.
Mr. Whitelaw Reid told me that the Japanese Ambassador had applied to Messrs. Morgan and Grenfell for a copy of the agreement. The American Govern- ment were being consulted as to whether this should be given, and when the point was settled he would communicate to Mr. Knox what I had said.
I am, &c.
[2023 gg -2]
E. GREY.