C.O.
[This Document is the Property of His Britannic Majesty's Government]
[August 3, 1908]
[No. 3437]
507
AFFAIRS OF CHINA.
CONFIDENTIAL
[29330]
No. 1.
SECTION 6.
(No. 300.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received August 24.)
Peking, July 2, 1908.
I HAVE the honour to inclose, for your information, copy of correspondence relating to a loan of 1,000,000 taels which has been made to the Board of Communications ("Yu Ch'uan Pu") by the Hong Kong and Shanghai Banking Corporation under an Agreement dated the 20th ultimo. From the Wai-wu Pu's note of the 30th ultimo, it would appear that loans contracted by metropolitan authorities are not excluded from the general rule that official loans from foreign financiers must be sanctioned by Imperial Decree.
I understand that the proceeds of this loan will be employed in redeeming such of the shares of the Imperial Chinese Telegraphs Administration as are held by the Chinese public, and for the purpose of improving the telegraph service generally throughout the Empire.
I have, &c. (Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
Sir,
Mr. E. Hillier to Sir J. Jordan.
Hong Kong and Shanghai Banking Corporation, Peking, June 20, 1908.
I HAVE the honour to hand you herewith, for your information, copies of the English and Chinese texts of an Agreement for a loan of 1,000,000 taels, signed this day at the Board of Posts and Communications.
Clause 6 of the Agreement provides that the Board will, after signature, write to the Wai-wu Pu, who will officially communicate the Agreement to your Excellency, and I have the honour to ask that you will be so good as to inform me upon receipt of this communication.
Payment of the first instalment of the loan is due in Shanghai on the 23rd instant, and the President of the Board of Posts and Communications informs me that he is writing to the Wai-wu Pu to-day. I hope, therefore, that the despatch of the Wai-wu Pu may reach your Excellency on the 22nd instant, so that I may be in a position to telegraph its receipt to my Shanghai branch in time for the payment to be made on the following day.
I have, &c. (Signed) E. G. HILLIER, Agent.
Inclosure 2 in No. 1.
(Translation.) Sir,
Prince Ching to Sir J. Jordan.
Peking, Kuang Hsü, 34th year, 6th month, 2nd day (June 30, 1908).
I HAVE the honour to inform you that the following despatch has been received from the Board of Communications:-
"In the prosecution of various works this Board has concluded a loan of 1,000,000 Kuei-p'ing taels with the Peking branch of the Hong Kong and Shanghai Banking Corporation, and on the 20th June last an Agreement was executed and
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