i
[This Document is the Property of His Britannic Majesty's Government.]
C.O.
D
AFFAIRS OF CHINA.
CONFIDENTIAL.
[41639]
No. 1.
165
34031
[Octobe
TREES 28.00 12
SECTION 1.
(No. 374.) Sir,
Sir J. Jordon to Sir Edward Grey-(Received October 5.)
Peking, September 18, 1912. WITH reference to my despatch No. 328 of the 5th ultimo, I have the honour to transmit herewith, in translation, a note which I have received from the Wai-chiao Pu, stating that no foreign loan or mortgage in respect of mining property can be recognised as valid unless the transaction has received the previous assent of the Chinese Government.
This communication was discussed at a meeting of the foreign representatives ou the 16th instant, and it was decided not to reply to it, but I am circulating it to His Majesty's consular officers for their information and guidance.
I have, &c.
Enclosure in No. 1.
Wai-chiao Pu to Sir J Jordan,
J. N. JORDAN,
(Translation.) Sir,
Peking, August 3, 1912.
WE- have received the following communication from the Ministry of Industry and Commerce :—
This Ministry has general charge of the administration of mines, and all sales, purchases, and transfers of, as well as loans and mortgages on, mining property by mine-owners must be notified and formally sanctioned before they can be put into effect. It is reported, however, that in various places mine-owners are constantly engaging in private loan or mortgage transactions, and it has even happened that agreements have been made with foreigners without the previous consent of a majority of the shareholders. It is of the utmost importance, therefore, that it should be made clear that any mortgage, under whatsoever name or title made, for foreign money, on any mine managed by Chinese merchants, can have no valid effect unless it has received the sanction of the Ministry."
On the 25th ultimo I addressed a note to your Excellency, stating that no foreign loan contracted by any railway under commercial management in the provinces could be valid unless submitted to, and allowed by, the Central Government. The question of mining affairs is on the same footing and should be treated in the same manner. In future the borrowing of foreign capital by mine-owners, to be effective, must have received the sanction of the Central Government, while the foreign lending merchant must request his Minister to ascertain whether the formal sanction of the Chinese Government has actually been given; then only can the loan be made and satisfactory safeguard be ensured.
I have the honour to communicate the above information to your Excellency for notification to the British mercantile community throughout the country.
I avail, &c.
(Seal of Wai-chiao Pu.)
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