[This Document is the Property of His Britannic Majesty's Government.
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8193
[B]
AFFAIRS OF CHINA,
C
CONFIDENTIAL.
of 14 MAR T [February 23.]
SECTION 1.
[6674]
(No. 37.) Sir,
No. 1.
Mr. Bryce to Sir Edward Grey.--(Received February 23.)
Washington, February 10, 1911. I HAVE to-day received an interesting and important communication from the United States Government in regard to the policy of Great Britain, France, Germany, and the United States as to loans to China. The contents of this communication were cabled to you to-day, and copies of it are enclosed herewith.
The subject has never been opened to me since my return, nor has any reference whatever been made to it, but I have learnt indirectly that the Secretary of State is still in the condition of sensitiveness regarding the attitude of His Majesty's Government which was detailed in Mr. Mitchell Innes's despatch No. 211 of the 11th November, 1910.
I have, &c.
J. BRYCE.
Enclosure in No. 1.
Note communicated to Mr. Bryce.
THE Government of the United States especially values the co-operation of the British, German, and French Governments and of their nationals with this Govern- ment and its nationals, in supplying China with funds necessary to the carrying out of its reforms and the development of its resources, and sees in this co-operation the creation, on the part of the great lending nations, of a community of vested interests which should consolidate their influence for the preservation of the principles of equality of commercial opportunity and the preservation of the integrity of the Chinese Empire, to which all the other Powers are equally pledged.
At the same time, to assure to China the benefits sought, and to insure to the Powers concerned the attainment of the object which inspires their interest in this policy, it appears to the American Government that not only in respect to the pending loan for currency reform and for enterprises in Manchuria, but also in respect to future loans, there should be satisfactory assurance that the funds advanced shall be employed for the purposes which moved the lenders and their Governments.
In the present loan negotiation the Government of the United States continues to exert its influence to induce the Government of China to consent to joint signature of the contract by the representatives of the German, British, and French groups, and it insists also upon China's fulfilment of its promise to appoint an American financial adviser. It has been suggested also that the wise expenditure of the funds for other purposes than the currency reform he secured by the appointment of auditors, who it was expected should be nationals of the four Governments concerned. In view of the present attitude of the Chinese Government, the Government of the United States has been considering the question whether it would not be wise for the four Powers concerned to make a declaration to the effect that they would not support the making to China, by their respective nationals, either directly or indirectly, of any loans to which the Chinese Government shall not first have satisfied them that due provision had been made for a reasonable supervision of the expenditure.
The Government of the United States will be glad to learn the views of the Governments of Great Britain, France, and Germany in the premises.
Department of State, Washington,
February 9, 1911.
[1909 --1]