4
[This Document is the Property of His Britannic Majesty's Government.]
6.0
[B]
AFFAIRS OF CHINA.
19897 RECO
[May 8.]
REG 16 JUN 11
CONFIDENTIAL.
SECTION 2.
the bank. In the event of any doubt arising as to the interpretation of the contract the English text shall rule.
day of the
Signed at Peking by the contracting parties this 24th day of the second month of the third year of Hsuan Tung, corresponding to the the forty-fourth year of Meiji (24th March, 1911).
K. ODAJIRU. SHENG HSỮAN-HUAI.
SCHEDULE of Payments of Interest and Repayments of Principal.
month of
[17264]
(No. 159.) Sir,
Year.
Principal still Outstanding.
Interest.
Principal Repaid.
Total Interest and
Principal.
Yen.
1
10,000,000
Yen. 500,000
Ten.
Yeu.
500,000
2
10,000,000
500,000
500,000
3
10,000,000
500,000
500,000
13,033,}}}
500,000
500,000
5
10,000,000
500,000
500,000
10,000,000
500,000
500,000
7
10,000,000
500,000
500,000
8
10,000,000
500,000
500,000
9
10,000,000
500,000
500,000
10
10,000,000
500,000
500,000
11
9,340,000
500,000
€60,000
1,160,000
12
8,680,000
467,000
660,000
1,127,000
13
8,020,000
434,000
660,000
1,094,000
14
7,860,000
401,000
660,000
1,061,000
15
6,700,000
368,000
G60,000
1,028,000
16
6,040,000
335,000
660,000
995,000
17
5,380,000
302,000
660,000
902,000
18
4,720,000
269,000
660,000
929,000
19
4,060,000
236,000
660,000
896,000
20
8,400,000
208,000
660,000
863,000
21
2,740,000
170,000
660,000
830,000
22
2,080,000
137,000
660,000
797.000
28
1,420,000
104,000
660,000
764,000
24
700,000
71,000
$60,000
781,000
25
38,000
Total
9,035,000
760,000
10,000,000
798,000
19,085,000
No. 1.
457
Sir J, Jordan to Sir Edward Grey,--(Received May 8.)
Peking, April 17, 1911. IN continuation of my despatch No. 125 of the 21st ultimo, and in confirmation of my telegram No. 100 of the 15th instant, I have the honour to transmit to you herewith copy of the "Currency Reform and Industrial Development Loun Agreement," which was signed on the 15th instant by Duke Tsai-tsê, the President of the Board of Finance, and the representatives of the four financial groups.
I have also the honour to enclose in translation memorials by the Board of Finance which constitute the programme of currency reform referred to in this agreement.*
The two statements specifying the nature of the proposed enterprises in Manchuria and the portions of the loan to be allotted to them have not yet reached me, but will be forwarded as soon as copies are procurable.
The wording of certain parts of the agreement caused considerable discussion amongst the Ministers of the four Powers, whose advice was sought by the representatives of the financial groups. The greatest difficulty was experienced in regard to clause 2 of article 8, which stipulates that the banks shall be given a period of six months for the consideration of the currency reform programme and the two statements relating to Manchurian expenditure. The English toxt, as it now stands, is a literal translation of the Chinese version, and was only arrived at after a lengthy meeting of the bankers and the four Ministers which was held at the American Legation the day before the agreement was signed. The Chinese negotiator, his Excellency Shêng, was anxious that as little prominence as possible should be given to the fact that the currency programme and the two statements had to be submitted for the consideration and approval of the lending banks as a condition precedent to the issue of the loan, and this was precisely the factor in the whole transaction to which the agents of the four groups attached the most importance. The passage "for the consideration and planning of all matters involved was translated in the preliminary agreement which had been initialled by Mr. Straight by the words "for making all their necessary arrangements."
My colleagues and myself felt that this latter expression, taken in conjunction with what follows, would be liable to serious misconception us conveying the impression that the period of six months was to be devoted not specially to the consideration of the programme and the two staternents, but generally to the arrangements necessary for the issue of the loan. The necessary correction was made at the last moment, and Duke Tsê assured the bankers on the completion of the signature that the Chinese Government was determined that nothing should be left undone on its part to make the reform of the currency really effective.
In a note dated the 16th April, copy of which I have the honour to enclose, the Wai-wu Pu have communicated to me, in accordance with article 20 of the agreement, a copy of the Imperial decrce authorising the conclusion of the loan.
J. N. JORDAN,
I have, &c.
:
Enclosure 1 in No. 1.
Currency Reform und Industrial Development Loan Agreement.
AGREEMENT made between the Board of Finance, acting under Imperial edict on behalf of the Imperial Chinese Government, of the one part, and Messrs. J. P. Morgan and Co.; Messrs. Kuhn, Loeb, and Co.; the First National Bank; and the
* Not printed,
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