[This Document is the Property of His Britannic Majesty's Government.]
(Confidential.)
2
Enclosure 3 in No. 1.
Lieutenant-Colonel Strickland to Government of Burmah.
November 21, 1910.
have the honour to IN reply to your telegram dated the 1st November, 1910, report that the boundary pillar reported to have been damaged by the Chinese authorities was visited and examined by Mr. Wilson's clerk, in the absence of Mr. Wilson on casual leave. The boundary pillar is No. 38, and it is now reported that the number has been destroyed and top of pillar damaged. This boundary pillar is on the delimited north-castern frontier, being the next one to the south of Manang Bum, which is No. 39. It is difficult to assign reason for interference with this boundary pillar; it can only be attributed to its being on the high road, and so likely to annoy Chinese authorities, while others are off the main track.”
[B]
AFFAIRS OF CHINA,
CONFIDENTIAL.
[83]
3447
£69
of 3 FEB II
[January 2, 1911.]
SECTION 1.
No. 1.
Sir J. Jordan to Sir Edward Grey,-(Received January 2, 1911.)
(No. 454. Confidential.)
Sir,
Peking, December 16, 1910. I HAVE the honour to forward herewith copy of minutes handed to me by Mr. Hillier, agent of the Hong Kong and Shanghai Bank, of a meeting held on the 13th instant by the Peking representatives of the British, French, German, and American groups who signed the recent agreement in London.
It will be noted that the first subject of discussion was the Kausu Railway loan, a scheme which was outlined in Mr. Max Müller's despatch No. 393 of the 1st November, and that the four groups propose to participate in
any definite
which may be ultimately reached.
agreement
Lord ffrench, who is leaving for London on the 19th instant in connection with the projected Chinchou-Aigun Railway, informs me that his conversations with the Russian Minister have led him to the conclusion that some arrangement is possible at St. Petersburgh. On the other hand, Mr. Straight does not consider that the Russian proposals for a Chinchou-Hailar and Harbin-Aigun Railway as an alternative to the Chinchou-Aigun line are to be taken seriously, and it will be interesting to see on what lines it is proposed to reconcile the conflicting interests.
The third question discussed was that of the 50,000,000 dollars gold loan which the American group has been negotiating for some two mouths past with the Chinese Government for the purpose of currency reform. It will be seen that the objections raised by the Chinese to foreign control of the expenditure and to the joint signature of the agreement by the four groups have necessitated a modification of the proposals. Mr. Straight has now proposed to the Chinese Government that a provisional agreement for 50,000,000 dollars gold should be signed forthwith between the American group and the Chinese Government provided that a satisfactory scheme of currency reform be drawn up within the next twelve months and that an American financial adviser be immediately appointed. For the immediate requirements of Manchuria the American group will advance 5,000,000 dollars gold against 6 per cent. Treasury bills to be repaid by the Chinese Government out of the proceeds of the loan or otherwise. When the terms of the currency scheme have been satisfactorily arranged by the American group the other groups will be invited to join in signing a supplementary agreement which will be in the nature of a final agreement embodying the necessary conditions of control and participation.
I understand from Mr. Straight that the negotiations have been conducted principally with Dr. Chen, a Chinese educated in America, who is a financial expert of high standing and is vice-president of the Taching Bank. He represents Duke Tsai Tse and the Ministry of Finance. It seems that when Prince Tsai Hsun was recently in America President Taft suggested to his Highness the expediency of securing the services of an American financial adviser. This suggestion was telegraphed to the Regent, who authorised his brother to convey his approval of it to the President. The American group therefore felt justified in making the appoint- ment of an adviser a condition of the loan, and the Chinese appeared at first ready to to fall in with this view. Indeed, the American Minister informed me this morning that when the Wai-wu Pu first approached him on the subject of this loan the Grand Secretary Na Tung had given him an assurance that an American adviser would be appointed to control the expenditure of the money. After the preliminary agreement was concluded the details had passed into the hands of the financiers. It soon became apparent that objections would be made to the appointment of a financial adviser. The signature of the inter-group and the inter-bank agreements in London had raised suspicions in the minds of the Chinese which had been further aroused by a repre- sentation made by the French Minister to the Wai-wu Pu with regard to the appoint- ment of a French financial adviser, Mr. Calhoun saw Duke Tsai Tse, the Minister of
[1850 -1]
266
No comments yet.
Private notes are available after approval.