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[This Documant is the Property of His Britannic Majesty's Government.]
CHINA.
CONFIDENTIAL.
[F 1303/1303/10]
No. 1.
Sir B. Alston to Earl Curzon.—(Received April 12.)
589
[April 12.]
SECTION 2.
Peking, February 23, 1921.
(No. 101.) My Lord,
I HAVE the honour to enclose copy of a letter from the Chairman of the British Chamber of Commerce, Shanghai, covering a resolution and recommendations from the Associated British Chambers of Commerce in China and Hong Kong regarding the establishment of a Central Miut at Shanghai.
I have repeatedly urged upon the Ministry of Finance the importance of establishing confidence in the currency of the proposed mint by adequate foreign representation in its management.
The Chinese Bankers Association have recently concluded an arrangement with the Chinese Government for the provision of funds necessary for the installation, This has no doubt been done with a view to obviating the necessity for a foreign loan and any direct right to foreign control. It will, however, be necessary to use such influence as we possess to impress both upon the bankers and the Government the need for foreign supervision if they intend that the mint should fulfil its declared purpose the provision of a standard exin. The interests of the substantial Chinese appear to be identical with those of the foreign banks, and it may be hoped that the influence of the latter will be sufficient to offset opposition to proper management.
'The action of the Chinese Bankers Association in providing funds for the mint has no doubt been largely due to the stimulus received from the foreign bankers and the British Chambers, and there is reason to believe that the native bankers will welcome foreign support in securing honest administration of the mint.
(Copy to D.O.T. and Shanghai.)
Enclosure in No. 1.
I have, &c.
B. ALSTON.
Sir,
British Chamber of Commerce (Shanghai) to Sir (i. Fraser.
Shanghai, December 17, 1920. I HAVE the honour to inform you that at the recent conference of British Chambers of Commerce in China and Hong Kong the following resolution was passed unanimously:
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That this conference welcomes the indications which the Chinese Government has given of its intention to open a mint in Shanghai, but would emphasise the absolute necessity of the employment of foreign experts with a view to ensuring the production and maintenance of a standard currency capable of replacing sycee."
In considering this subject the conference had the advantage not only of a memorandum drawn up by the Foreign Exchange Bankers' Association, a copy of which was sent to His Majesty's Minister early this year, but in addition the results of assays recently made by the Indian Government Mint in Calcutta of dollars issued by Chinese Government Mints. These results are given in detail in the verbatim report and show clearly that the dollars which the Chinese Government Mints are issuing are insufficiently constant in point of fineness to enable the foreign banks to discontinue the use of sycee, a step which they are ready to take as soon as a reliable dollar currency has been brought into existence.
This being the case the Associated Chambers desire to urge upon the Chinese Government the necessity of placing under adequate supervision the mint which it is believed to be willing to establish in Shanghai. The Foreign Exchange Banks are of
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