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This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
[8725]
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No. 1.
118
[March 6.]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received March 6.)
(No. 37.) Sir,
Peking, January 20, 1909. SINCE the issue of the Decree of the 5th October, 1908, on the subject of currency reform, of which a translation was inclosed in my despatch No. 461 of the 16th October, there have been frequent references in the "Official Gazette " to measures which were being framed by the Board of Finance for reorganizing the finances of the whole Empire, and on the 1st January a Decree was published approving in general terms the Board's proposals, but referring them back for reconsideration in view of certain amendments which had heen suggested by the Council for Government Affairs-a body composed of the highest officials in the capital.
A few days later the Board's original Memorial, with the Regulations attached thereto, was published; and on the 15th January the Regulations in their amended form appeared in the "Gazette.”
This document, of which I have the honour to inclose a translation, provides for the establishment in Peking of a Financial Council, under the Board of Finance, and in the provinces of Financial Bureaux, under the high provincial authorities, which will be charged with the preparation of detailed accounts of all revenue and expenditure. Their first duty during the forthcoming Chinese year, which begins on the 22nd January, will be to clear off all old accounts up to the end of 1907, and to present returns showing items of revenue and expenditure during 1908 on forms to be supplied by the Board of Finance. At the same time they are called upon to make quarterly returns for the current year, together with a statement of account for the whole twelve months.
In 1910 similar quarterly returns and an annual statement of account will be made, and estimates will be prepared for 1911. Under the Board's direction items will be distinguished under two main headings, Imperial and local finance. Over the latter the Provincial Assemblies or Parliaments will have power of supervision which are not too closely defined.
The years 1911 and 1912 will be utilized in perfecting the preparation of provincial and metropolitan Budgets, it being laid down clearly that all public expenditure will be strictly subjected to the Estimates, and after these years of probation and practice a general Budget for the whole Empire will be made in the year 1913.
The enactment of such a measure proves how much remains to be done before the Central Government will be in a position to ascertain its resources, and justifies the assumption that the returns with which it has hitherto been furnished are recognized as valueless. The experience of the next five years will show, however, whether the present attempt at reorganization, crude as it appears, will result in systematizing the returns of revenue and expenditure on a trustworthy basis, and its development will be followed with interest.
I have, &c. (Signed)
J. N. JORDAN.
Inclosure in No. 1.
Regulations of the Board of Finance for the Adjustment of Chinese Finances,
(Summarized translation.)
Regulations 1 and 2,
SECTIONS 1-4 provide for the establishment in Peking, under the Board of Finance, of a Financial Council (“Ch'ing-li Ts'ai-cheng Chu"), and in each province of a Financial Bureau (" Ch'ing-li Ts'ai-cheng Chu ");
These Departments will be responsible for clearing off all outstanding accounts, and for preparing statements of all income and expenditure, in readiness for making-
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