This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
[20398]
No. 1.
[July 4.]
SECTION 2.
(No. 260.) Sir,
Sir Edward Grey to Sir J. Jordan.
Foreign Office, July 4, 1907. I TRANSMIT to you a copy of a letter from the Colonial Office, respecting a suggestion by the Hong Kong Government that, in view of the acute currency crisis at present existing in Canton and Hong Kong, steps may be taken to urge upon the Chinese Government its obligation under the Mackay Treaty to establish a proper currency in China. The position of the currency question seems to be as follows:
In August 1905 Sir E. Satow was instructed to bring before the Chinese Govern- ment the suggestion that a silver dollar of uniform weight and fineness should be instituted. He was at the same time to point out that such a measure need not necessarily interfere with the proposal to proceed concurrently with the reform of the copper currency, that the question whether coinage was to be carried out at one central mint or by the existing provincial mints must be determined by local considera- tions, but that it was essential, if the provincial mints operated, that they should do so under central control.
In November 1905 an Imperial Decree was published sanctioning the immediate introduction of a uniform silver currency, with a coin of the weight and value of a Kuping tael as a standard unit.
Subsequently a Memorial of the Finance Commission was issued requesting that restrictions should be placed upon the output of copper coin from the provincial mints, the representations made as to the danger to be expected from the unlimited coinage of the now 10-cash pieces having evidently begun to bear fruit.
No information on the subject has reached me since, and, as far as I am aware, the Decree ordering the establishment of a uniform silver currency with a standard unit remains a dead letter.
I shall be glad to learn if this is a fact, and, in the event of that being so, if you will report to me whether you consider the time opportune for making further representations to the Chinese Government as to the fulfilment of Article II of the Mackay Treaty.
I am, &c. (Signed) E. GREY.
* Not printed.
[2564 d-2]
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