CO129-382 - Public Offices - 1911 — Page 456

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

CHINA RAILWAYS.

CONFIDENTIAL

[4987]

No. 1.

[February 10.]

SECTION 1.

Mr. Bryce to Sir Edward Grey,--(Received February 10.)

(No. 28.) (Telegraphic.) R.

Washington, February 10, 1911. CHINESE loan. Following is abstract and extract of communication of United States Government to-day-

United States Government especially values the co-operation of British, German, and French Governments and their nationals in supplying China with funds for development as tending to the equalisation of commercial opportunity and preservation of China, and considers satisfactory the assurance that proper expenditure should be secured.

Communication continues as follows:--

"In present loan negotiations United States Government continues to exert its influence on the Chinese Government to consent to joint signature by representatives of the German, British, and French groups, and it insists also on China's fulfilment of its promise to appoint American financial adviser. It has suggested also that wise expenditure of funds for other purposes than currency reform be secured by appoint- ment of auditors, who it was expected should be nationals of the four Governments concerned. In view of the present attitude of the Chinese Government, the United States Government has been considering the question whether it would not be wise for the four Powers interested to make a declaration to the effect that they would not support making to China by their respective nationals, either directly or indirectly, of any loans as to which the Chinese Government shall not first have satisfied them that due provision has been made for a reasonable supervision of expenditure.

"United States Government will be glad to learn the views of the British, French, and German Governments [? on] the presents."

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