of the uncertainty of the political situation in China, the 192
Japanese group subsequently decided to defer action and the
advance was not made. At this juncture His Majesty's Govern- ment received a note from the United States Ambassador in
London informing them that the United States Government were contemplating the formation of an American group to participate in the proposed loan, but that as the group was not in a position not being yet organised, to participate in the proposed advance, the United States Government considered it highly important that the British group should do so. After urging His Majesty's Government to make the necessary arrangements to that end, the no te proceeded to say that should such participation by the British group in the advance be found practicable, the American group, when organised, might entertain a proposition to carry temporarily the British group's future participation in the loan. Mr. Balfour understands that a precisely similar proposal Was made to the French group by the United States Ambassador in Paris.
His Majesty's Government were unable to accept the proposal contained in the United States Ambassador's note as the Lords Commissioners of His Majesty's Treasury, whose consent is required under existing enactments to all financial operations involving fresh issues of capital by British subjects during the war, could not see their way to permit the British group to
participate directly in the proposed advance, This decision was
commini ca ted to Mr. Page, but it was auggested that if the Uni te States Government desired the nominal participation of the British group in the advance for political reasons, this might be assured by an arrangement between the American and the British
groups whereby the former agreed to carry the latter's share of
the advance until after the war'.
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