CO129-373 - Public Offices - 1910 — Page 437

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

AFFAIRS OF CHINA.

36747

[November 9.]

CONFIDENTIAL.

RECR

SECTION 2.

REGE OF

No. 1.

[40866]

Sir Edward Grey to Mr Max Müller.

(No. 144.)

Foreign Office, November 9, 1910. (Telegraphic.) R.

YOUR telegram No. 183 of 7th November: Chinese loans. It was understood that at the meeting of the four groups which was held in London yesterday the Germans and French intended to hold out for the joint signature of the proposed American loan before agreeing to sign the further inter-group agreement for all future loans in China. It seemed to us, however, a mistake not to sign the latter agreement, as, though we are entirely in favour of signature of the 10,000,0001, loan by all the groups, we considered we should be in a stronger position to press this if the general agreement were first concluded, as (1) the latter stipulates that all parties should use their utmost endeavours to secure joint signature; and (2) by the terms of that agreement the Americans would be obliged, in the event of the other three groups declining to participate in the present loan, to find the money in their own market, and would be unable to unload in the markets of the other groups.

It was therefore agreed that the British group should do their best to bring the parties together to secure the signature of the general agreement.

At the meeting beld yesterday the general agreement was accepted by all, subject to a few amendments.

As regards the 10,000,000%. loan, the Americans declared that they felt under a moral obligation to the Chinese to put this through, and they therefore stipulated that they should be allowed to issue this on the London or European markets if it proved impossible to get the Chinese to assent to joint signature. They asked, in fact, that this loan should be excepted from the provisions of the general agreement. The representatives of the other groups argued against this, and the Americans have cabled to New York for instructions.

Another meeting is to be held to-day.

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