[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[21551]
No. 1.
C O 23533 [Pune 3.]
SECTION 2.
REC
Mr. Whitelaw Reid to Sir Edward Grey.-(Received June 3.)
My dear Sir Edward,
London, June 2, 1911. 1 DID not fail to give Mr. Knox confidentially the purport of our conversation of the 30th concerning the causes of Russian and Japanese hesitation about the Manchurian loan for currency reform and industrial enterprises. At the same time I reported to him the application of Mr. Kato to Messrs. Morgan, Grenfell, and Co., for the text of the loan agreement and accompanying papers, with their request for my advice, and a statement of the advice I gave them-all of which has already been mentioned to you in our conversation.
I am now authorised by Mr. Knox to assure you that we have no objection whatever to having copies of these papers furnished both to Russia and Japan, explaining currency programme and specifying Manchurian enterprises.
My Government has already given a similar answer to the enquiry which on my advice was made to the State Department on the same subject by the American group; and I am in a position to assure you that it is prepared to insist that the small part of the loan allotted to Manchurian industrial enterprises shall be used strictly for those named.
Believe me, &c.
[2062 c-
-2]
WHITELAW REID.
80