CO129-451 - Public Offices - 1918 — Page 153

[This Document is the Property of His Britannic Majesty's Government.] 150

CHINESE LOANS AND CONCESSIONS.

[148542]

CONFIDENTIAL.

No. 1.

[July 28.)

SECTION 1.

Mr. Rea to Mr. Gregory.—(Received July 28.)

The Crescent Athletic Club, Brooklyn, N.Y., Dear Mr. Gregory,

July 11, 1917. AS all letters have to pass the censorship in England, I am taking the liberty of passing through your hands the enclosed letters to Messes. Pauling and Co., with the request that after perusal you will kindly forward them to the office at 26, Victoria Street.

I am enclosing a duplicate copy of my memorandum to the Secretary of State, so you may retain it. My ons desire in placing this situation so forcibly before the secretary was to invite his attention to a situation that should be faced, and have taken the liberty of presenting certain phases of the situation to him from the British and French view-point, which obviously cannot be voiced at this time. I may add that these thoughts and ideas have not in any way been made the subject of newspaper discussion, nor is it my intention at this time to make any public reference to them.

an

I want you to believe that I have done all in my power to invite attention to the situation in China, which now demands a solution through some basis of honourable and equitable co-operation, as the one most effective means of straightening out unpleasant tangle. I am preparing a critical analysis of the situation precipitated by the activities of the American International Corporation, and will see that you receive a copy of same.

I simply invite your attention to the fact that, independently and unofficially, I have requested Mr. Donald, at Peking, to place the full situation before Dr. Sun Yat Sen, who, as leader of the majority party in Parliament, can bring about the suspension of the American contract, pending public discussion of the terms and their extension to all of China's contracts. This must come in due time, and I take it that it is better for the Chinese themselves to accept the change in conditions and provide for increased terms to others than have this made the subject of diplomatic pressure. At any rate, if Sun acts on my advice it will bring the Americans face to face with the question of co-operation, which they are now shirking, because they got "in bad.”

I remain, &c.

GEO. BRONSON REA.

Enclosure in No. 1.

Memorandum: A Temporary Solution of China's Railway Problems (Respectfully submitted to the Honorable Secretary of State, June 23, 1917.)

IN view of the expected visit of a Japanese War Mission to this country, scheduled to arrive some time in August, and the certainty that the future of China must form one of the most important topics for discussion and adjustment, I beg to submit the following suggestions for a temporary solution of the problems, pending final decision of the status of China at the post bellum Peace Conference.

FO

You are familiar with the details of the present international political tangle in China precipitated by the American International Corporation in accepting a railway contract which raised the issue of the open door with the four Allies--Great Britain, France, Russia, and Japan-at the same time, and you will sense the fact that, notwithstanding the unquestioned purity of motives on the part of the American Corporation in this time of intense national feelings, the Allies have good reason to suspect that the issue was raised for the purpose of advancing the interests of Germany. As the State Department has publicly placed itself on record that, for over four months it had no official knowledge of the details of this contract, or of other subsequent activities of the American International Corporation, this throws the responsibility for raising the issue upou the officials of the corporation.

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