This Document is the Property of His Britannic Majesty's Government.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[21176]
No. 1.
42
24461
[June 20?]
SECTION 1.
7 JUL 08
(No. 285.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received June 20.)
Peking, May 25, 1908.
I HAVE the honour to inclose a translation of a note from Prince Ch'ing of the 15th instant, repeating the principle laid down originally in a note of the Tsung-li Yâmen of the 5th December, 1891, that any foreign loan made by provincial authorities must be sanctioned by the Throne before the Central Government will recognize it as a binding contract.
A similar communication was reported to Lord Salisbury by Sir Claude MacDonald in his despatch No. 6 of the 7th January, 1899.
The present note has been evoked, it appears, by the fact that loans have been made to Mongol Princes or Chinese authorities in Mongolia without authority from Peking. I have no trustworthy information on the subject, but it has been commonly reported for some years past that such transactions have taken place.
I am sending a copy of Prince Ch'ing's note to His Majesty's Consular Representatives in the ports, though the principle in question is, I imagine, well known to all British subjects who are in a position to make loans for public purposes.
It will be noted that it does not apply to loans contracted by metropolitan authorities, who have recently, on more than one occasion, borrowed considerable sums for public purposes from British financial agencies without express sanction from the Throne.
I have, &c. (Signed) J. N. JORDAN.
Inclosure in No. 1.
Wai-wu Pu to Sir J. Jordan.
(Translation.) Sir,
Peking, 34th year, 4th month, 16th day (May 15, 1908).
HITHERTO Chinese provincial authorities who have wished to have recourse to foreign loans for any public purpose have invariably been obliged to memorialize the Throne first, for sanction by Decree; and this is then officially communicated by the Board of Foreign Affairs to the Minister of the nationality concerned as evidence of the transaction; or the foreign financier first reports to his Legation which inquires of this Board, and if it is found that a Memorial is on record the loan can then be proceeded with.
A note to this effect was sent to the Foreign Representatives by the Tsung-li Yamen on the 5th December, 1891. Nevertheless, it has recently come to light that in different parts of Mongolia there have been several cases of loans being borrowed directly from foreign capitalists, in a private manner, and without any Memorial to the Throne.
Fearing that foreigners may by such means become involved in difficulties, it is important to emphasize the fact that the old rule still obtains, and this Board, in conjunction with the Boards of Finance and Dependencies, have now memorialized the Throne, proposing that in future if any foreign loan be contracted in any part of Mongolia the Banner authorities must first report to the Board of Dependencies, which, in conjunction with the Wai-wu Pu and the Board of Finance, will memorialize the Throne and await the issue of a Decree, while the foreigner concerned should similarly report to his Legation for inquiries to be made of this Board as to whether any Memorial is on record, before the loan can be made. If the records do not show that the Memorial has been granted, and the foreigner lends money on his own responsibility, the Chinese Government will assume no liability, irrespective of the...
[1819 -1]
I
This Document is the Property of His Britannic Majesty's Government.§).
AFFAIRS OF CHINA.
CONFIDENTIAL.
[21176]
No. 1.
42
24461
[June 201
SECTION 1.
7 JUL 08
(No. 285.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received June 20.)
Peking, May 25, 1908. I HAVE the honour to inclose a translation of a note from Prince Ch'ing of the 15th instant, repeating the principle laid down originally in a note of the Tsung-li Yâmen of the 5th December, 1891, that any foreigu loan made by provincial authorities must be sauctioned by the Throne before the Central Government will recognize it as a binding contract.
A similar communication was reported to Lord Salisbury by Sir Claude MacDonald in his despatch No. 6 of the 7th January, 1899.
The present note has been evoked, it appears, by the fact that loans have been made to Mongol Princes or Chinese authorities in Mongolia without authority from Peking. I have no trustworthy information on the subject, but it has been commonly reported for some years past that such transactions have taken place.
I am sending a copy of Prince Ch'ing's note to His Majesty's Consular Represen- tatives in the ports, though the principle in question is, I imagine, well known to all British subjects who are in a position to make loans for public purposes.
It will be noted that it does not apply to loans contracted by metropolitan authorities, who have recently, on more than one occasion, borrowed considerable sums for public purposes from British financial agencies without express sanction from the Throne.
I have, &c. (Signed) J. N. JORDAN.
Inclosure in No. 1.
Wai-wu Pu to Sir J. Jordan.
(Translation.) Sir,
Peking, 34th year, 4th month, 16th day (May 15, 1908).
HITHERTO Chinese provincial authorities who have wished to have recourse to foreign loans for any public purpose have invariably been obliged to memorialize the Throne first, for sanction by Decree; and this is then officially communicated by the Board of Foreign Affairs to the Minister of the nationality concerned as evidence of the transaction; or the foreign financier first reports to his Legation which inquires of this Board, and if it is found that a Memorial is on record the loan can then be proceeded with.
A note to this effect was sent to the Foreign Representatives by the Tsung-li Yamen on the 5th December, 1891. Nevertheless, it has recently come to light that in different parts of Mongolia there have been several cases of loans being borrowed directly from foreign capitalists, in a private manner, and without any Memorial to the Throne.
Fearing that foreigners may by such means become involved in difficulties, it is important to emphasize the fact that the old rule still obtains, and this Board, in conjunction with the Boards of Finance and Dependencies, have now memorialized the Throne, proposing that in future if any foreign loan be contracted in any part of Mongolia the Banner authorities must first report to the Board of Dependencies, which, in conjunction with the Wai-wu Pu and the Board of Finance, will memorialize the Throne and await the issue of a Decree, while the foreigner concerned should similarly report to his Legation for inquiries to be made of this Board as to whether any Memorial is on record, before the loan can be made. If the records do not show that the Memorial has been granted, and the foreigner lends money on his own responsibility, the Chinese Government will assume no liability, irrespective of the
[1819 -1]
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