[This Document is the Property of His Britannic Majesty's Governm0
AFFAIRS OF CHINA.
CONFIDENTIAL.
367
421
[December 8.]
SECTION 2.
JAN 10
[44922]
No. 1.
Telegrams communicated to Foreign Office by Mr. Addis, December 8, 1909.
(1.)
Telegram dispatched to Hong Kong, November 30, 1909.
WITH reference to our S. 0. letter of the 24th December. Advise the following to Peking by wire: Referring to your S. O. letter of the 27th October to Shanghae branch, Paris Berlin are inquiring what is the present position of Manchuria loan; telegraph to us full particulars. Have the Americans asked for participation? Is it a provincial loan sanctioned but not guaranteed by Imperial Government? Is there any security for proper application of proceeds? Refer to our S. O. letter of the 24th December last year.
(2.)
Telegram received from Peking, December 2, 1909.
RE your telegram 30th to head office, present position is: We have informed Viceroy, Manchuria, Hong Kong and Shanghae Banking Corporation, Deutsche Asiatische Bank, Banque de l'Indo Chine are prepared lend immediately 6,000,000 taels, terins to be arranged; we are awaiting Viceroy's reply. Viceroy has signed previously with American preliminary agreement 10,000,000 taels provincial guarantee, but agreement entirely general and states no terms. We have suggested American participation on grounds that it will be good policy, but we do not propose to approach American in any case until business firm in hand. We have asked for Imperial Chinese Government guarantee, but it is probable cannot be obtained, particularly as Americans do not insist upon it. Object of loan will be stated in agreement, but it is beyond our power to control application, as in the case of railway loan; advise Deutsche Asiatische Bank and Banque de l'Indo Chine.
(3.)
Telegram received from Hong Kong, December 3, 1909.
RE proposed Manchurian silver loan, E. G. Hillier wires: Must we insist upon Imperial Chinese Government guarantee; our opinion is, proposed business being of nature local advance is on different footing from loan issued on European market. Re foregoing, do you think provincial silver loan under Imporial Edict is not satisfactory from point of view of further Chinese Government gold loan, or do you consider general opinion would be it is not safe? If security considered satisfactory and loan goes through, it is not our intention to place our share on the market, but hold against silver liabilities.
(4.)
Telegram dispatched to Hong Kong, December 7, 1909.
REFERRING to your telegram of the 3rd, we think you ought to hold out for Chinese Imperial Government guarantee. Even if not issued to public, we do not consider provincial loan desirable; would probably lead to more provincial borrowing with detrimental results national credit" both with regard to existing and future Chinese Imperial Government gold loans. Banque de l'Indo Chine share our views; we are expecting reply from Deutsche Asiatische Bank to-morrow.
[2548 h-
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