[This Document is the Property of His Britannic Majesty's Government.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[8478]
No. 1.
94
13346 [March 8.j
25 PR II SECTION 1.
Mr. Bryce to Sir Edward Grey.-(Received March 8.)
(No. 50. Confidential.) Sir,
Washington, February 24, 1911. LAST night the Secretary of State, whom I met dining at the German Embassy, took the opportunity of our chatting all three together in the smoking-room after dinner to open the subject of his recent proposal anent the contemplated Chinese loan. Other guests were present, but how far they heard and followed what he was saying it was not easy to tell. Mr. Knox said that, having had a promise from China to accept an American financial adviser, he thought it necessary as a matter of principle to hold the Chinese Government to their contract in that respect; but he would not, in point of fact, insist on the appointment of an American as such adviser. An adviser and guide was absolutely required, because China could not by herself carry out the currency reforms needed, and without some such guidance and control there would be no security for the proper application of the loan to the purposes for which it was destined, but he was perfectly willing that the adviser should be taken from a neutral country such as Holland, or Belgium, or Switzerland, or Sweden, or, possibly, if it could be so managed among the four l'owers, an adviser might be selected from each of them in succession. He would nowise press for an American adviser; all he cared for was that China should be protected, not only against exploitation by irresponsible financiers from without, but also from the temptations to misappropriation or waste to which her internal administration was exposed. He earnestly hoped that the European Powers would appreciate this view and would agree to the proposals he had made. To me privately he remarked that, while he understood that in some matters His Majesty's Government might feel bound by their relations with Japan or other Powers, this was a matter in which Great Britain was not so hampered; that she and the United States stood alike for the open-door, and that their policy might therefore more on similar lines. He added that it was obvious that so much had to be done in China and by China in many ways that the present projected loan would probably he only the first of several that would be needed.
In reply I confined myself to observing that he was quite right in thinking that His Majesty's Government had no ulterior selfish objects, and were heartily not only in favour of the open-door policy, but sincerely desirous of helping China and of doing whatever could be done to promote ber good government and welfare, and I promised to inform you of what had fallen from him.
These Chinese questions are the only part of United States foreign policy in which Mr. Knox appears to take any personal interest.
I have, &c.
JAMES BRYCE.
P.S.-Since this despatch was written I have received from the State Department a note verbale bearing on the subject and to much the same effect as the conversation above reported. A copy of it is enclosed herewith.-J. B.
Enclosure in No. 1.
Note verbale communicated to Mr. Bryce,
ON the general principle that China should not disregard its international undertakings, this Government has insisted upon the carrying out by the Chinese Government of its promise to ask the United States to nominate a financial adviser.
In urging the Chinese Government to consent to the joint signature of the pending currency loan by the four financial groups, the United States attaches
[1918 h~~1]
May
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