Chinese firm insist that the Agreement was entirely a "bogus" one and that no loan was made and that it was entered into merely to extricate them from difficulties with their own Authorities and to obtain the protection of a foreign flag.
At the interview yesterday the matter was fully discussed: threats, actual and veiled, were, I understand, made use of and the Viceroy consented that the books of the then-Yen-Tai firm should be investigated.
After His Excellency the Viceroy had taken his leave of the Italian Consul, he called by appointment on me - His Excellency having been good enough, in reply to a request for an interview, to say that he was coming on to this Concession and would save me the trouble of going into the City.
The business I had to transact with His Excellency was in connection with the promulgation of the Imperial "dicta". His Excellency, however, spoke of the above case, asking me what I thought of it and saying that he had ordered the books to be examined. I replied that I could express no opinion.