2
could be faced, if necessary, of removing the currency from a silver to a gold basis, as other countries in a like position have already done.
Lord Lansdowne will see that my Lords are in accord with the view of the China Association that China should be urged to take steps for the fulfilment of her obliga- tions by instituting the coinage of a uniform silver dollar, though they see no reason why this measure should not proceed concurrently with the reform of the copper currency to which the Chinese authorities incline. Whether the coinage should be carried out at one central mint or by the existing provincial mints is a question which Joral considerations must determine, but it is essential that the provincial mints, if they operate, must do so uniformly under central control. No progress towards a settlement can be made while independent action is possible like that of the Wucbang Viceroy in the issue of the new Impeh tael.
I am, &c.
(Signed)
G. H. MURRAY.
239
This Document is the Property of His Britannic Majesty's Government: C. O.
CHINA TRADE,
CONFIDENTIAL.
[August 24.] RE
31709
TRES 4 SEP 05
(No. 185.)
Sir,
No. 1.
The Marquess of Lansdowne to Sir E. Sutow.
SECTION 1.
Foreign Office, August 24, 1905. I REFERRED to the Lords Commissioners of the Treasury a proposal contained is the inclosed copy of a letter from the China Association,* respecting the reform of the Chinese currency, urging that in view of the prevailing coinage of silver dollars of different values by provincial mints in considerable numbers in various parts of China, the Chinese Government should be reminded of their undertaking to establish a niform coinage for the whole of the Empire.
I also referred to their Lordships your despatch No. 150 of the 2nd May last, reporting a conversation with the Chinese Minister of Finance in regard to the policy
lich the Board of Revenue intend to adopt in the matter.
I transmit herewith a copy of their Lordships' reply,† from which you will see that they concur in the view of the China Association on the subject, and I have accordingly request that you will urge the Foreign Board to take steps for the fulfilment of the bligations incurred by the Chinese Government under Article II of the Mackay Treaty 1002 to provide for a uniform national currency by instituting the coinage of a silver dollar of uniformn weight and fineness. This need not necessarily interfere with the proposal to proceed concurrently with the reform of the copper currency to which the Chinese authorities incline. You will also urge that whether the coinage is carried out at one coutral mint or by the existing provincial mints-a question which must be determined by local consideration--it is essential that the provincial mints, if they operate, must do so uniformly under central control. No progress towards a settlement. can be made while independent action is possible like that of the Wachang Viceroy in the issue of the new Hupeh tael, which appears to be inconsistent with the undertaking given on the subject by the Chinese Government.
I also inclose, for your information and guidance, copies of correspondence as marked in the margin, which has been received from the various Associations interested in the Chinese currency question. They have been informed, in reply, that you have been instructed to bring the matter to the notice of the Chinese authorities with a view to their giving effect to their Treaty obligations.
I am, &c.
(Signed)
LANSDOWNE,
* China Association, May 23; August 10, 1905.
† Treasury, August 14, 1905.
Hong Kong and Shanghae Bank, July 1; Manchester Chamber of Commerce, June 29; Liverpool Camber of Commerce, July 11; Glasgow Chamber of Commerce, July 10, 1905.
[2140 aa-1]