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[This Document is the Property of His Britanni Bajesty's Government ]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[17856]
No. 1.
10097 REC?
Rec: 16 JUN 11
[May 12.]
SECTION 1.
!
Sir,
Foreign Office to Treasury.
Foreign Office, May 12, 1911. BY article 2 of the commercial treaty between this country and China of the 5th September, 1902, China agreed, as the Lords Commissioners of the Treasury are no doubt aware, to take the necessary steps to provide for a uniform national currency which should be legal tender in payment of all duties, taxes, and other obligations throughout the Chinese Empire by British as well as Chinese subjects.
No steps have so far been taken to carry out the terms of the article in question. On the 15th ultimo, however, an agreement was signed at Peking by the Board of Finance on the one band, and by a group of British, American, German, and French bankers, with the cognisance and support of their respective Governments, on the other, for a loan of 10,000,000%, to be applied to (1) Chinese currency reform, and (2) to industrial development in Manchuria.
I am directed by Secretary Sir E. Grey to transmit to you herewith, to be laid before the Lords Commissioners, a copy of a letter from the manager of the Hong Kong and Shanghai Bank,* the British parties to the agreement, enclosing a copy of the agreement, together with a copy of the programme of currency reform referred to in article 8 of the agreement.
It will be observed that a period of six months is allowed to the banks for the examination of this programme, and Mr. Addis is anxious, in view of the importance of the interests involved, to secure the assistance of His Majesty's Government in the consideration of the proposals put forward by the Chinese Government.
The question of currency reform in China is of urgent importance to British commercial interests in the Far East, and Sir E. Grey considers it very desirable that every effort should be made to remedy the present chaotic state of the Chinese monetary system. He therefore trusts that the Lords Commissioners may see their way to lending their assistance in the examination of the currency reform programme. Should their Lordships concur, Sir E. Grey would suggest that Mr. Addis might be asked to place himself in communication with your department on the question of how such assistance could best be rendered.
I am, &c.
F. A. CAMPBELL.
* Mr. Addis, May 10, 1911.
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