[This Document is the Property of His Britannic Majesty's Government.]
475
AFFAIRS OF CHINA.
CONFIDENTIAL.
[25381]
со
[July 13.]
24838
SECTION 1.
RECR
No. 1.
R 12 AUG 10.
Hong Kong and Shanghai Banking Corporation to Foreign Office.--(Received July 13.)
Dear Sir Francis,
31, Lombard Street, London, July 12, 1910. A RECENT attempt by the Viceroy of Manchuria to obtain a loan for his province, for which he was unable to obtain an Imperial guarantee of repayment, led to the enclosed interchange of views between the British, French, German, and American groups.
It is a satisfaction to us, as I believe it will be to His Majesty's Government, to know that the American group associate themselves with the British, French, and German groups in declining to entertain proposals for the issue of a Chinese Provincial Loan except on the condition that the redemption of the loan is unconditionally guaranteed by the Imperial Chinese Government.
Yours truly,
C. S. ADDIS.
Enclosure 1 in No. 1.
Deutsch-Asiatische Bank, Berlin, to Hong Kong and Shanghai Banking Corporation.
Unter den Linden 31, Berlin, W. 8, June 23, 1910.
Dear Sir,
WE beg to acknowledge receipt of your to-day's telegram reading as follows :----
St
Hillier wires urging acceptance Manchurian Silver Loan without Government guarantee, as exceptional case and because security perfectly good. Nevertheless, in our opinion, it would be mistake in present political condition China do anything which might opon gates to provincial borrowing. We confirm our telegram to Peking-Hong Kong (?) 7th December, but before wiring Hillier would like have expression your and Paris views."
We replied to this telegram that we quite agree with you and will wire to Shanghai accordingly in the following terms --
4
Hong Kong Bank, London, will not give way; we also think it necessary to have guarantee Chinese Government, otherwise we will not do the business."
Yours faithfully,
DEUTSCH-ASIATISCHE BANK,
Enclosure 2 in No. 1.
M. Simon to Mr. C. S. Addis.
Banque de l'Indo-Chine, 15 bis, Rue Laffitte, Paris, le 23 juin, 1910.
Cher Mr. Addis,
JE m'empresse de vous accuser, réception de votre lettre d'hier et de ses annexes et de me dire entièrement d'accord avec vous sur le contenu de votre lettre à M. Rehders. La manière de voir que je vous exposais par mes lignes du 31 mai dernier ne s'est aucunement modifiée, et j'estime comme vous qu'il serait d'une détestable politique d'encourager la Chine dans la voie des emprunts provinciaux non garantis par le Gouvernement Impérial.
Je souscris done entièrement à la réponse que vous vous proposez d'adresser dans ce sens à Mr. Hillier.
[2827 n]
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Croyez, &c.
S. SIMON.
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