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196
The Japaness Government, besides approaching His Majesty's
Government officially in regard to this loan and requesting that
the necessary instructions should be given to the British group
with a view to their facilitating the progress of the negotia-
tions in co-operation with the other groups, also suggested that
the United States Goverment might be willing to reconsider their
attitude in regard to political loans to China, and to provide
half of the sum required. His Majesty's Ambassador at Washington
was instructed by telegram to bring this suggestion to the notice of the State Department and to say that His Majesty's Government
would welcome the participation of an American group. Before,
lowever, any decision had been reached by the United States
Government the Chinese Minister for Finance approached the
representatives of the British, French, Japanese and Russian
roupa in Peking with a request for an immediate second advance
of 2,000,000 1. on the projected loan for the purpose of restoz-
ing the value of the notes issued by the Bank of Chine, which hadi
suffered considerable depreciation. The Japanese group informed
the other groups in the consortium that in their opinion the
request of the Chinese Government should be acceded to, and they
intimated that they were prepared to proceed alone if the com
sent of the other groups was not forthcoming.
After consultation with the Japanese Goverment, Ha
Kajesty'a Government decided to s dvise the British group to
instruct their representative to consent to the proposed advance,
it being understood that the 2,000,000 1. would be found by the
Japanese group alone, as none of the other groups in the consor-
tium were in a position to participate in it. In view, however,
of/
X