AIDE MEMOIRE.
Lupe
The Chinese Minister, under instructions from
his Government, has the honour to bring to the attention
of His Britannic Majesty's Government the serious situation
that has arisen by reason of the recent fall in the value
of silver.
In the past five years, silver has fallen about
forty per cent in value, although world production has in-
creased by only five per cent. Depreciation is due largely
to the sale of stocks of silver by governments, notably the
Government of India. A further fall has lately resulted
from the silver import duty enforced by the Indian
authorities.
Without wishing in any way to trench upon matters
of internal concern to the Indian Government, the Chinese
Government feel warranted in calling attention to the grave
injury to China caused by recent silver depreciation. Co st
of living has been raised; great losses and even business
failures have resulted; and the value of savings of the
people has diminished. These conditions are reducing the
purchasing power of China and, by disrupting foreign
commerce, injure the trade and industry of countries
trading with China. The cost of meeting China's gold
obligations is increased and the problem of dealing with
debts in arrears is made more difficult. Moreover, further
depreciation of silver would interfere with measures of
currency reform and other measures of financial rehabilita-
tion contemplated by the Chinese Government.
In