CO129-382 - Public Offices - 1911 — Page 281

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[773]

3447

[January 7.]

E

of 3 B !

SECTION 3.

No. 1.

Sir J. Jordan to Sir Edward Grey.--(Received January 7.)

(No. 6.) (Telegraphic.) R.

AGENT of Hong Kong and Shanghai Bank informs me Birchal has arranged

Peking, January 7, 1911. with Board of Communications for a further issue of Peking-Haukow Railway redemption bonds at 984, other terms same as before; that Dunn, Fisher, and Co. telegraphed two days ago accepting contract; and that it is expected that agreement will be signed here in a few days. Amount is variously stated to be 2,400,000 dollars or 3,000,000 dollars.

As regards unsatisfactory reply of Chinese Government to enquiries as to guarantee of this loan, please see my despatch No. 472 sent by Siberia 30th December.

[83]

(No. 4.)

No. 2.

Sir Edward Grey to Sir J. Jordan.

(Telegraphic.) R.

YOUR despatch No. 454, Confidential, of 16th December: China loan."

Foreign Office, January 7, 1911. French Government have expressed strong objection, which they hope is shared by His Majesty's Government, to proposed appointment of an American financial adviser, and urge undesirability of lending money to China, except on the lines of the inter-group agreement of 7th July, 1909.

They are being informed that His Majesty's Government entirely concur, and that they are not prepared to give diplomatic support at Peking to a loan which does not fulfil these conditions.

It will, however, be pointed out to French Government that, however disinclined His Majesty's Government may be to facilitate a loan which might result in the establishment of a foreign financial adviser at Peking, even if only in the limited capacity of controller of the funds of this particular loan, they have no power to prevent British financiers from taking up a part of the loan if it is offered to them, and that, even if we were to dissuade one financial house from participating, another might do so without consulting us in the matter, and that our inability to stop raising of a loan in this country is and must remain an essential factor in the present question.

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