Statement.
ADVANCE of 10,000,000 yen, equal to. sax, 6,500,000 dollars, which it is proposed to devote to Administrative Expenditure for the months of July, August, and September. Allocation as follows:--
The Ministry of Foreign Affairs-
Expenses for the Legatio is abroad
The Ministry of Home Affairs→→
Expenses for the Ministry proper
Expenses for police
Expenses for the yamên of Infantry-General
Dollara
Dollars. 573,819
103,338-20 314,039-66 188,000
605,372.86
The Ministry of Finance-
Expense for the Ministry prop-r
52,787
Excuses for the bureaux, factories, departments,
and offices longing to the Ministry
50,000
Expenses for the President'a yau ôn
168.000
Expenses for the bureaux belonging to the Cabinet
102,000
Expenses for the Ceus rate (Ping Cheng Yusa). Expenses for the bur, au of audit
Expenses for the Imperial p-n-ione
Expenses for bur au for compilation of history of
Manchu dyn-ty
666,466
27 048
27,214
Pay for the right corps of baunerten
84,138 830,000
2,008,723
The Mini-try of Aray-
Expenses for the Ministry proper
140,000
Salaries and allowances to the various bureaux of
the various divisione under the Ministry
2,000.000
2,140,000
The Ministry of Navy-
Exp area for the Ministry proper
68,800
Expenses for the various commander-in-chief, men-
of-war, and ach. o's belonging to the Ministry..
300.000
368,800
The Ministry of Justice-
Expenses for the Ministry proper
54,000
Expenses for courts and gaols,.
150,001
204,000
The Ministry of Education-
Expenses for the Minary proper
80,000
Ex, ense for schools, butuan, and offices belong-
ing to the Mooistry
$00.000
880,000
The Ministry of Agriculture and Commerce→→
Expenses for the Ministry proper
Eap uses for grounds baging to the Ministry..
100,000 60,0 0
160,000
Graud Total
6,140,714-86
Equal to, say, 10,000,000 yen.
[This Document is the Property of His Britannic Majesty's Government.]
CHINESE LOANS AND CONCESSIONS.
CONFIDENTIAL.
[234714]
175
[December 11]
SECTION 2.
No. 1.
Sir J. Jordun to Mr. Balfour.-(Received December 11.)
(No. 334.) Sir,
Peking, October 23, 19917. WITH reference to your telegram No. 297 of the 15th August, I have the honour to forward herewith a copy of the agreement concluded on the 28th August between the Yokohama Specie Bank, representing the Japanese group, and the Chinese Govern- ment for the so-called advance of 10,000,000 yen.
The text of the agreement has only now reached me, having been supplied to me by the Hong Kong and Shanghai Bank, who are responsible for the translation from the Chinese.
1
This advance by the Japanese bank has been spoken of throughout as being an advance of the prospective Second Reorganisation Loan; but I gather from Mr. Hillier that its status is not very definite beyond the fact of its being an eventual charge upon the proceeds of that loan if and when concluded, as stipulated in article 10 of the agreement.
The advance is issued in the form of Chinese Government Treasury bills, redeemable in one year from the date of issue and bearing 7 per cent. interest. The proceeds of the advance are to be devoted solely to administrative purposes for the months of July, August, and Se,tember of the present year in the manner shown in the statement annexed to the agreement. The Treasury bills are secured on the whole receipts of the Sa't Gabelle, with the exception of such receipts therefrom as are already pledged otherwise.
Mr. Hillier informs me that the proceeds of the advance when converted into Chinese currency amounted to 5.830.000 Mexican dollars net. Of this, 4,000,000 dollars have been handed to the Ministry of War, 800,000 dollars to the m litary governor of Anhui, who is a notorious reactionary, and only 700,000 dollars have been expended on administrative objects.
There thus remain about 300,000 dollars still in hand.
It is not without significance that, of an advance ostensibly negotiated solely for administrative purposes, well over four-tilths should have already been devoted to military objects, and that no attempt ha apparently been made to exercise any control over any portion of the proceeds of the advance.
I have, &c.
J. N. JORDAN.
Enclosure in No. 1.
Agreement for Lon of 10,000,000 yen made by the Japanese Group (Yokohama Specie Bank (Limited) } to the Chinese Government August 28, 1917.
(Translation of Chinese Text.)
WHEREAS the Chinese Government desires to borrow the sum of 10,000,000 yen as an advance of the Supplementary Reorganisation Loan which it is proposel to negotiate with the four banki g groups: and
Whereas the Japanese banking group is prepared to undertake the matter; Therefore the Minister of Finance, representing the Government of the Republic of China (hereinafter called the Chinese Government"), and the Yikolama Specie Bank (Limited) (hereinafter called "the bank "), representing the Japanese banking group, have drawn up this agreement at Peking, the clauses of which are as follows:- 1. The bank und rtakes to make an advance of 10,000,000 yen within ten days, commencing from the date of this agreement, to be paid over to the Chinese Govern- ment in accordance with the procedure laid down in article 4 of this agreement.
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