;
C
2
1. Resolution clarifying the phrase Government guarantee."
5. Completion by signature of the agreement establishing the consortium which was
initialled by the delegates at Paris on the 12th May, 1919.
6. Application of a Belgian group for inclusion in the consortium.
7. Application of an Italian group for inclusion in the consortium.
8. Consideration of existing old four-Power group business.
(a.) What is position of Russian bankers under loans in which they
participated?
9. Consideration as to whether formation of Chinese group should be encouraged. Explanation by Mr. Lamont as to attitude taken by him, with approval of Peking group representatives, on this matter on his recent trip to China. 10 Tabling of all existing agreements and options to be pooled in accordance with
the minutes of the 11th May, 1919.
N.B. The British group has submitted a summary giving the par- ticulars required, drawn up in a suitable form, which should be adopted by all the groups.
11. Consideration of the financial requirements of China for general purposes,
having regard to--
(a.) Attitude of Chinese Government with regard to German issued bonds. (b.) Pacific Development Corporation loan and wine and tobacco revenue.
(1) Additional advance, if option is extended.
(c) Currency reform.
(d) Land tax. Consideration of land tax as additional security, under supervision of a foreign inspector on lines of Salt Administration.
12. Railway policy of the consortium, having regard to-
(.) Unification of China's railways.
(b.) Relative importance of, and priority of treatment for, different trunk and
branch lines of railway.
(c) Standardisation of equipment and equality of open tender.
(d) Conference of railway engineers.
13. Chinese Eastern.
14. Hukuang Railway.
(a.) Issuance of second series of loan.
(b) Proposal of the 28th April, 1920, made by group representatives at
Peking to Minister of Communications,
(e) Abolition of sections.
(d) Silver loan for local expenditures.
15. General.
As bearing upon ability of consortium to function effectively, latest information
should be made available to the conferees upon the following points :-
(a.) Unification of north and south.
(1) Disbandment of troops.
(2) Adoption of constitution.
(3) Election of representative Parliament,
(b) Establishment of adequate fiscal system.
(c) Proposed abolition of likin.
(d) Budget for ensuing twelve months.
(e) System for the supervision of expenditures from loan funds.
3
Enclosure 2 in No. 1.
THE CHINA CONSORTIUM.
Minutes of a Meeting held in the Executive Committee Room of the New York Chamber of Commerce on October 11, 1920.
Representing the British group-
Sir Charles Addis. Mr. S. F. Mayers.
Representing the French group
M. R. Thion de la Chaume. M. Georges Picot.
Present:
Representing the Japanese group--
Mr. Kimpei Takeuchi. Mr. Reitaro Ichinomiya.
Mr. R. C. Witt.
M. Henri Mazot.
Mr. C. F. Whigham,
Mr. J. Ridgely Carter.
Mr. Burnett Walker.
Representing the American group
In Attendance:
I. Chairman.
Mr. Thomas W. Lamont. Mr. Mortimer L. Schiff. Mr. Charles H. Sabin. Mr. Albert H. Wiggin. Mr. Frederic W. Allen. Mr. John Jay Abbott.
Mr. F. W. Stevens.
Mr. Jeremiah Smith, Jr. Mr. A. M. Anderson.
Mr. Robert I. Barr.
Mr. L. L. Strauss.
Upon the proposal of Sir Charles Addis it was unanimously agreed that Mr. Thomas W. Lamont take the Chair.
II.-Secretary.
Mr. W. E. Leveson and Mr. J. Ross Tilford were appointed joint secretaries to the meeting.
III-Minutes of the Paris Meetings.
The Minutes of the Paris meetings of the 11th and 12th May, 1919, were confirmed, subject to the following three amendments :—
1. Government Support.-The words in the introductory paragraph and are entitled to the exclusive diplomatic support of their respective Govern- ments were deleted and the following substituted:
CC
And whereas their respective Governments have undertaken to give their complete support to their respective national groups the parties hereto in all operations undertaken pursuant to the agreement herein- after contained and have further undertaken that in the event of competition in the obtaining of any specific loan contract the collective support of the diplomatic representatives in Peking of the four Govern- ments will be assured to the parties hereto for the purpose of obtaining such contract
L
2. Chinese Government Guarantee.-The words or to companies having
Chinese Government or Chinese Provincial Government guarantees were deleted and the following substituted :-
A
or to companies or corporations owned or controlled by or on behalf of the Chinese Government or any Chinese Provincial Government or to any party if the transaction in question is guaranteed by the Chinese Government or Chinese Provincial Government.
3. Preamble. The following addition to the recitals to the agreement was
adopted :-
*
And whereas the said national groups are of the opinion that the interests of the Chinese people can in existing circumstances best be served by the co-operative action of the various banking groups repre-
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