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2. Transfer of loan funds.-Maximum weekly amount 200,0007,
Note. If absolutely necessary this may be increased to 300,0001. Higher amounts may seriously influence exchange market.
3. Each transfer from America and Europe to China to be of equal amount and > simultaneously from the four banks. Rate of exchange to be settled with all banks on same day, following precedent of Hukuang agreement clause 7.
4. Transfer of currency portion of loan from banks in China to Chinese bank designated by Government. Currency reform programme must prescribe that certificates accompanying transfer orders must be signed by financial adviser approved by banks, or successor approved by them. The programme to also define duties of financial adviser.
5. If possible fourteen days' prepayment of loan service instead of ten days to be obtained.
6. Total or partial redemption from 15th to 20th years inclusive at 24 per cent. premium agreed to.
7. Preference to banks for any supplemental loan required to completely carry out currency scheme to be insisted upon, as well as preference for future Manchurian loans.
8. With regard to suggested price, 95 per cent. There being no commission on materials, and in view of increased stamp duties in England, France, and Germany, improvement of 1 per cent, in terms of loan to be insisted upon. This may be obtained either by refunding 1 per cent, towards expenses of issue, &c., or about three months' bonification in first coupon. If such improvement obtained, 3 per cent. interest on funds deposited in Europe and America and 2 per cent. on funds deposited China would be agreed to.
9. Mixed loan could not be agreed to.
10. In case contract cancelled refund of cost of engraving bonds waived.
It was agreed that the following cables be sent through the American group to Mr. Straight and communicated by him to the representatives of the other three groups:
Cable No. 1.
Four banks in conference Brussels decided to authorise conclusion agreement on terms of your telegram 144 subject to the following modifications:----
1. Advances to constitute a first charge on loan securities. Second million only after approval currency reform programme.
2. Transfer of loan funds to China may if absolutely necessary be increased to 300,0001. Larger amounts would disorganise exchange.
3. Transfer to Shanghai. After "four banks" insert "simultaneously exchange
to be settled simultaneously." Note.--This follows precedent article 7 Hukuang loan. 4. Silver payments in Shanghai or Gold America Europe. Alter "ten" to "fourteen" days.
5. With regard to preference, after "supplementary loan " add " required to complete currency scheme."
6. Banks agree waive expenses engraving bonds.
7. Mixed loan unacceptable.
8. Chinese to pay 1 per cent. on nominal amount loan towards increased stamp
duty and expenses, &c., or allow a bonification of 1 per cent. in first coupon.
9. If No. 8 agreed to, interest on loan funds 3 per cent. America Europe, 2 per cent. China.
Cable No. 2.
Telegram 14th March.-Interbank conference generally approved procedure suggested, and will proceed as soon as possible to selection suitable financial adviser.
Cable No. 3.
Telegram 16th March.-Interbank conference regret they are unable to adopt views of their Peking representatives with regard to preliminary advance for account of proposed currency reform before scheme has been submitted to and approved by them. Conference unanimously of opinion proposed concession would be inexpedient and
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render more difficult the task of inducing the Chinese Government accept an adequate scheme of currency
reform.
For and on behalf of the American Group-
CHARLES F. WHIGHAM. WM. LLEWELLYN. C. MELCHIOR.
For and on behalf of the Hong Kong and Shanghai
Banking Corporation-----
C. S. ADDIS.
For and on behalf of the Banque de l'Indo-Chine-
ST. SIMON.
B. ULLMANN.
For and on behalf of the Deutsch-Asiatische Bank--
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FR. URBIG. E. REHDERS.
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