[This Document is the Property of His Britannic Majesty's Government.1414
C O
35951
AFFAIRS OF CHINA.
Rear 24 NOV 49
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CONFIDENTIAL.
[October 28.]
SECTION 5.
[39302]
No. 1.
Mr. Addis to Mr. Alston.-(Received October 28.)
Dear Mr. Alston,
31, Lombard Street, London, October 28, 1910. YOU will remember that on the 6th July, 1909, the representatives of the English, French, and German groups met in Paris and signed inter-group and inter-bank agreements for joint participation in all future railway and loan business in China.
The American group were offered participation on equal terms, but would only accept on the condition that the English, French, and German groups would undertake to obtain an official quotation for the American bonds on their respective hourses. The French Government refused to allow their group to give such an undertaking with regard to Paris and, accordingly, the attempt to include the Americans failed, and the agreements were concluded between the English, French, and German
groups alone.
As a way out of the difficulty, I suggested that in lieu of granting an international quotation for the American bonds, the English, French, and German groups should agree, if required, to issue the American portion on commission in their respective markets.
This proposal was favourably received in New York, and has now been agreed to in principle by all the groups---English, French, German, and American.
To give effect, however, to the proposal, it has been found necessary to re-draft the inter-group and inter-bank agreements so as to admit of the inclusion of the American group.
I now enclose copies of the new draft quadruple inter-group and inter-bank agreements, which have been agreed to by the representatives of the American group and myself. They are now under consideration by the French and German groups, who have been invited to attend a conference in London, on Saturday the 5th November, when, unless some hitch occurs, they will, I hope, he finally signed.
These draft agreements are intended to embrace all future loans, with the sole exception of the Hukuang loan, for which a separate agreement has been made between the four groups.
The proposed Manchurian and China currency loans would, therefore, auto- matically fall within the sphere of the new agreements.
I shall inform you as soon as the assent of the French and German groups to the conference has been obtained. In the meantime, I trust the foregoing explanation will make clear to you how the necessity for annulling the old agreements and entering into these new agreements has arisen.
Yours, &c.
* Not printed.
[2958 ee-5]
C. S. ADDIS.
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