Robert Lansing to Woodrow Wilson

PERSONAL AND CONFIDENTIAL:I had an interview this morning with M. Paul May, the Minister of Belgium to China who is on his way to his post. Our conversation consisted mainly in his urging our Government to enter a consortium of the Allies on the ground that such a course was the only way to defeat the ambitious designs of Japan. He pointed out that this country and Japan would have to supply the bulk of any loans made to China, that the interests of Great Britain, France, Belgium and the United States were the same and that by an international concert there would be established a control over Japanese aggressiveness which would check political interference with China.
He said further that if loans to China were made independently by the different powers it would come down to loans by Japanese and by American houses, as other nationalities would find it impossible to enter into a competition of this sort; that Japan would at any cost or by any means obtain a preponderance of the loans because the Government would aid the Japanese bankers in order to create a situation; and that with a preponderance of the loans Japan would be in a position in case of any default on the part of China (a default almost certain to occur in view of the instability of the Chinese Government) to intervene independently in Chinese affairs with the excuse that Japanese interests were at stake and that as those interests were paramount interference by other Governments would be considered unjustified and offensive.
I told M. May that he probably was aware of the policy of this Government being opposed to a consortium, that we had favored independent financial relations with China because it seemed in the interests of China that there should be competition for loans and because concerted action by the powers appeared to involve political control to an extent in China. I said that at the present time I realized that policies, even when long established and based on well defined principles, might have to be modified or changed to meet the extraordinary international conditions resulting from the war, and that I was not, therefore, disposed to deny the wisdom of a consortium in view of the new situation or to say that this Government would reject the suggestion without carefully weighing the matter from the standpoint of expediency.
I said to him that the subject would receive thorough consideration, but that I would not indicate even my personal views as to the advisability of adopting the suggestion or express in any way the possibility of such adoption.Baron Moncheur and the Belgian Minister have both talked with me about this matter during the last few days. They feel very keenly about it and very anxious to have Belgium included in a new consortium. My own view is that the whole question, being of so much importance to our future relations in the Far East, ought to be considered with little regard to the past.