CO129-382 - Public Offices - 1911 — Page 266

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

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carry it into effect with or without coadjutors, and to test each measure by comparison" with the prescribed rules.

Now that the date of the inauguration of Parliament has been advanced, the period of years originally fixed for the various measures in the list of preparatory undertakings must likewise be contracted and genuine progress must be made.

We command the Constitutional Government Committee without delay to devise satisfactorily the necessary altorations, submit a memorial for our perusal, and request our instructions for their action.

[B]

AFFAIRS OF CHINA.

CONFIDENTIAL,

[46833]

December 29.]

C

3447

SECTION 3,

No. 1. of 3 FEB !!

Sir F. Bertie to Sir Edward Grey.-(Received December 29.)

(No. 484.) Sir,

Paris, December 28, 1910. HIS Majesty's chargé d'affaires addressed a communication to M. Pichon on the 17th instant, in the sense of the instructions contained in your despatch No. 518 of the 15th instant on the subject of the Chinese loan.

I have the honour to transmit to you herewith copy of the reply from M. Pichon. His Excellency states that he presumes that you have already learnt from the British Minister at Peking of the insistence of the American Minister and Mr. Straight as regards the nomination of an American financial adviser. M. Pichon considers that such an advantage would not harmonise with the principle of complete equlity between the English, French, German, and American groups for the Chinese loans. The suggested difference between the engagement of a financial adviser and the nomination of a mere controller of the loan funds would only have the appearance of a difference, for the loan is partly for currency reform, and this reform entails the financial reorganisation of China. The person proposed for the post is Mr. Jenks, who is the author of the project of 1905 for the gold money standard in China. The importance of the question arises both from the political and the financial situation of China, which does not exclude the hypothesis of a future control of its finances exercised by the lenders. It follows, therefore, that the nomination of the first controller has a considerable signi- ficance. The European Governments who have granted or guaranteed loans cannot take up a disinterested attitude for the benefit of the Americans in regard to the question, for the latter have not lent money in the past, and do not seem more disposed to do so at present, The United States cannot be said to have any particular rights in the matter or qualifications to control Western European funds. Russia has pointed out this fact at Peking and Washington. The resistance of China to the American demand will, moreover, doubtless render the above considerations of a theoretical character only.

As regards the application of a part of the loan to Manchuria-a plan which has aroused legitimate suspicions in Russia and Japan-it does not appear that the matter has been examined in detail, or that there is any fixed programme on the part of the Chinese and the Americans. It is thought, according to information received at the French Ministry for Foreign Affairs, that the 50,000,000 fr. of 100,000,000 fr. apportioned to Manchuria would be used to create an agricultural bank, to develop local Chinese industries, and for the works of the port of Kiutcheou.

M. Pichon concludes by expressing the hope that you will share his opinion as to the objections to any Chinese loan concluded without the guarantees agreed on between the English, French, and German groups.

I have, &c.

FRANCIS BERTIE.

Enclosure in No. 1.

Note communicated to M. Pichon.

LE chargé d'affaires de Sa Majesté britannique a bien voulu, à la date du 17 décembre courant, exprimer le désir de Sir Edward Grey de connaître les informations que le Gouvernement français peut posséder tant sur la question de l'engagement éventuel d'un conseiller financier américain par la Chine, que sur les détails de l'application prévue à la Mandchourie d'une partie des fonds de l'emprunt sino-américain.

Le fait même de l'insistance du Ministre des États-Unis et de Mr. Straight, Pékin, pour obtenir du Gouvernement chinois la nomination d'un conseiller financier

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