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Before an answer could be received to this suggestion news arrived from Peking that the Japanese Group had concluded on the 6th instant an agreement with the Chinese Minister of Finance for a second advance of 10,000,000 yen (1,000,000 1.) an account of a further issue of the Chinese Reorganisation Loan, instead of 2,000,000 1. which was the amount originally applied for by the Chinese Goverment, His Majesty's Government thereupon addres- sed a further note to the United States Ambassador expressing the opinion that the step which the Japanese group had just taken did not necessarily prevent the realisation of the scheme outlined in the previous note, should that proposal commend itself to the United States Government, as it would appear feasible for the British group to participate nominally in the advance provided that the American group were willing to find the other 1,000,0001 onable it to do so. This might be effected under an arrangé. nant whereby the British group would guarantee the repayment of their share, viz:- 500,000 1., within one year after the war, if not already repaid by the Chinese Government. It was pointed out that the consent of the Japanese Government and the Japanese group would, no doubt, have to be obtained to this fresh soheme, and it was suggested that the United States Government were in the best position to secure this consent, in view of the fact that American participation in the load had originally been poposed by the Japanese Government.
In bringing the foregoing facts to the French Ambassador's notice, Mr. Balfour has the honour to request His Excellency to be so good as to invite the French Government to consider whether in view of the importance on political grounds of securing the
-entry of an American group into the consortium with a view to its eventual participation in the projected supplementary Reorg-
isation Loan, and having regard to the fact that the United States Government would appear to wish to make the participation”-
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