CO129-373 - Public Offices - 1910 — Page 394

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This Document is the Property of His Britannic Majesty's Government.]

C O

35951

AFFAIRS OF CHINA.

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Prof 24 NOV TO

CONFIDENTIAL.

[November 3.]

SECTION 1.

[39444]

(No. 140.)

(Telegraphic.) R.

No. 1.

Sir Edward Grey to Mr. Max Müller,

Foreign Office, November 3, 1910. YOUR telegram No. 180 of 30th October: American loan. Mr. Addis gathers from Mr. Straight that so far only a memorandum has been signed by the United States Minister at Peking with the Chinese Government, to the effect that a loan for the amount in question shall be negotiated. The conditions have apparently not yet been considered. The loan is, however, to be shared by the European groups by virtue of an agreement, similar to that of last year, which it is hoped will be signed by the four groups on 5th November, to cover all future loans to China.

So far the Chinese are said to be insisting on the present loan contract being signed by the American group alone, though Mr. Straight has promised to endeavour to secure the signature by representatives of the four groups.

I should like to ensure signature of final contract by all four groups, and inclusion of usual conditions as regards security and employment of proceeds, but it would not be desirable to intervene ineffectually.

In referring to this loan yesterday, the United States Ambassador mentioned the possibility of obtaining the appointment of an American adviser at Peking to ensure the proper expenditure of the loan funds.

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