2
changes appear desirable the Ministry will, in the first place, consult further with the banking group.
(Copy to Department of Overseas Trade.)
Enclosure in No. 1.
I have, &c.
B. ALSTON.
FROM
1921
HONG KONG
DATE
18 may
Rar
593
24757
IR 20 AY 21
Extract from " North China Daily News," March 7, 1921.
THE SHANGHAI MINT LOAN.
Peking, March 4, 1921. THE contract for the Shanghai mint loan of 2,500,000 dollars in Chinese currency was signed yesterday by the Minister of Finance, the Director of the Currency Bureau and representatives of the Shanghai mint loan Chinese banking group. The contract makes the following stipulations:-
1. Treasury notes will be issued in accordance with regulations to be announced by the Ministry of Finance.
2. The money derived from these notes is to be exclusively used for the purchase of land, the building of the mint and its equipment with machinery. Within one month of the signing of the contract the parties of the first part will instruct the officers of the Shanghai mint and their engineers and contractors to draw up a detailed plan for the approval of the parties of the second part. Upon the latter's approval, the building of the mint will proceed without delay, and an immediate order for the required machinery will be placed.
3. In accordance with the Shanghai mint Treasury notes regulations, the parties of the first part will receive 93 dollars for every 100 dollars note, and the parties of the second part will sell for the actual amount received by the parties of the second part.
4. The notes will bear 9 per cent. interest.
5. On the day of the signing of the contract, the parties of the second part will place to the credit of the Shanghai mint account the net sum of 2,325,000 dollars upon the notes that have underwritten, as a deposit bearing 4 per cent. interest, all the interest on the notes being debited to the account of the Shanghai mint from the deposit above- mentioned.
6. The parties of the second part will bear all the expenses involved in the sale of the notes, telegrams, posting, advertising, &c., the second parties receiving not more than 1 per cent. of the total value of the notes as commission.
7. A monthly redemption of 70,000 dollars will be effected from April 1921 to May 1924, for which the first parties will instruct the Salt Administration to make such payment to the Bank of China and the Bank of Communications in Shanghai, which will in turn hand over the money to the second parties for the redemption of the
notes.
8. Upon the completion of the Shanghai mint, the first parties will hand over the documents in relation to the ownership of the land, machinery, equipment, &c., to the second parties.
9. This deals with the profits, which cannot be taken out by the first parties until all the notes have been redeemed.
The remainder is unimportant. The banking group concerned is practically the same as the one which contracted for the railway-car loan.
March 5, 1921.
In connection with the Shanghai mint loan, the Government is organising a currency reform commission, which will include representatives of the Chinese banking group, the Customs, the Ministry of Finance and the Currency Reform Bureau.-- REUTER.
FOR CIRCULATION -
SUBJECT
Mr.
Mr.
V
Rickett Athi
Mr. Grindle.
Sir H. Lambert,
Sir H. Rad.
Sir G. Fiddes.
Col. Amery,
Mr. Churchill.
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